With advancement in cloud gaming, a new gaming console from Microsoft is being speculated. But before Microsoft debuts its true next generation Xbox, a cheap Xbox, called Xbox Lite, is expected to come out first.

The cheap Xbox - codenamed Xbox Lite - will be ARM-based variant of Xbox 360. The rumored price of Xbox Lite is around $100-150. Xbox Lite will expected to come out in late 2013, followed by Xbox 720.

Microsoft may not title its next generation gaming console as Xbox 720. Instead a fancy name like Xbox Loop or Xbox Next is rumored. A newer version of Kinect is also expected. The new Xbox could heavily rely on Kinect.

In the shrinking world, DVDs fall short to store the heavy texture game in single piece. The upcoming Xbox possibly will not include disc drive. Instead, it will use a hard disk and online storage options. And this is where cloud gaming concept comes out. According to latest reports, game developers have already started making titles for next generation Xbox. A recent job listing from Lionhead game developer, stated that they were looking for DirectX 11 specialist. It indicates that next generation gaming console Xbox is already in development and so the company is developing a game title for it. Currently, DirectX 11 is not being used in any gaming console and the upcoming Xbox is expected to feature it for true high-end graphics.

Meanwhile, Windows 8 is emerging as a multi-platform OS. Hence, it is expected that next generation Xbox will run on Windows 8. Also, Windows games could be compatible with Xbox 720.

Xbox 360 was released in 2005. According to latest reports, Microsoft has sold more than 66 million of Xbox 360. Previously, Microsoft announced that Xbox 360 will have a life span of 10 years. If that statement is to be believed, then we have to wait until 2015 to catch a glimpse of true next generation Xbox. But reports are surfacing online that Microsoft will announce Xbox 720 in early 2013 and it will be released by the end of the 2013.

(reported by Johnny Wills, edited by Surojit Chatterjee)

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