Microsoft has quashed the hopes of Xbox enthusiasts by announcing that the highly anticipated Xbox 720 will not be released in 2012, but not all fans are convinced and the Xbox 720 rumor mill continues to turn.

No Xbox 720 this year? Naaah experts say we'll see it at E3, Khoi Vinh tweeted on Monday.

When asked by Le Point if the Xbox 720 would feature at E3, Microsoft's Cedrick Delmas said there would be no new releases in the coming year. The Xbox 360's cycle is not over at all. The proof is that we haven't price cut this year, he added. Afterward, what will happen at E3? It's still too early to say. What's certain is that there will be nothing new in 2012, he said.

Delmas explained that Nintendo had put itself in a different cycle that is going forward in its own rhythm. With success as we have seen with the Wii, now it's their turn to present their innovation.

Release Date

According to IGN the Xbox 720 will be released by October 2013. Tech blogs Fudzilla and SemiAccurate say mass production of the product will begin in 2012.

New Processor

The next generation of processors applied to the new console could potentially come with  a 32-nanometer PowerPC chip, as well as an ATI 7000-series Southern Islands GPU, which is expected to make the console up to eight times faster, according to Information Week.

Blu-Ray Player and Kinect 2

The Xbox 720 will come with a built in Blue-Ray, which can contain 50 GB of data, according to Kotaku. It is also expected to boast Microsoft's motion-detecting Kinect system. Commenting on these rumors, a Microsoft rep e-mailed Kotaku with the following statement:

As an innovator we're always thinking about what is next and how we can push the boundaries of technology like we did with Kinect. We believe the key to extending the lifespan of a console is not just about the console hardware, but about the games and entertainment experiences being delivered to consumers. Beyond that we don't comment on rumors or speculation.

No Disc Tray

Rumors have been circulating that the new Xbox will be entirely digital with no disc tray. But Examiner.com calls the rumor a big stretch, saying there would be no money in the business past the initial sale.

Won't Play Used Games

It is rumored that the new console will not play used games -- a rumor that has been one of the most unsettling for Xbox fans, although most tech bloggers are skeptical. I've heard from one reliable industry source that Microsoft intends to incorporate some sort of anti-used game system as part of their so-called Xbox 720, Stephen Totilo wrote on Kotaru, adding that the source wasn't sure what technology Microsoft would use to actually achieve this.

Name

The next generation of Xbox has been dubbed 720 by bloggers and writers. There is no way of knowing what the console will be called until there is an official announcement, but the most popular version circulating the Web is Xbox Loop.