If rumors can be believed Microsoft will announce Xbox 720 at E3 2012. An industry source at Crytek was quoted by Videogamer.com, who revealed that Microsoft wants to make its new console announcement ahead of rival Sony and will do so in the next 12 months and 'likely' at next year's E3.

A new TimeSplitters game for the next generation of consoles is being developed by Crytek. Since the specifications of the new machine are yet to be finalized, Crytek will make use of Microsoft's DirectX 11 as the current basis for next-generation development, videogamer.com reports quoting the anonymous Crysis 2 developer.

According to the anonymous source, gamers can expect improved graphics on TimeSplitters 4 which are considerably better than the current generation technology, which will employ DX11 tessellation effects. The source said that the game and CryEngine will play key role in next-generation game development.

As for the game itself, the new TimeSplitters is reported to focus on the series' branching paths and exploratory nature, with sandbox-style gameplay elements a big priority. The current goal is for levels to feature multiple routes that lead to the same overall conclusion, Videogamer.com reported.

The game has been rotting in development hell after its initial announcement way back in 2007 and was put to rest in 2009.

Microsoft and Crytek haven't issued a statement yet.