The highly anticipated Xbox 720 from Microsoft is already making rounds on the internet and the latest rumor that has picked up pace is whether the upcoming console will also work as a digital video recorder.

According to the reports, a patent for such a console was filed back in 2007. However, it didn’t get approved until Dec. 27, 2011. Now it has been described by the U.S. Patent & Trademark Office as:

“A digital video recorder (DVR) application running alongside a television client component allows users to record media content on the gaming console. The DVR application also integrates itself with the console menu. Once integrated, users can record media content while playing games. Alternatively, users can record content when the gaming console is turned off.”

“The recorded content can include television programming, gaming experience (whether local or online), music, DVDs, and so on. When in the recording state, users can also switch between various other media modes, whether gaming, television, and so on.”

Already the Xbox 360 dashboard update is here and now if the DVR technology is integrated with a gaming console, then all media, including movies and television will flow along with it.

The Xbox 720 with all this cool stuff may feature at the E3 2012, according to a Reghardware.com report.