Next Xbox rumors: specs, developers, GPU, and more

The next Xbox is nigh, and you've just discovered the very best place on the internet to watch the next generation of video games come to life. Today, May 21st, starting at 9:30AM PT, The Verge and Polygon will team up to bring you Microsoft's Xbox reveal live. Join our editor-in-chief Joshua Topolsky and Polygon's Justin McElroy as we host live shows before and after the event, bringing you informative, insightful, and probably some rather irreverent discussion of whether the next Xbox lives up to the world's expectations.

Microsoft is preparing to update its Xbox 360 with another dashboard update. Sources familiar with Microsoft's Xbox plans have revealed to The Verge that the dashboard update will enter into a public beta in late June or early July, with changes and updates in preparation for the next-generation Xbox. We're told that the user interface will be refreshed alongside smaller Live Tiles, similar to what Microsoft is preparing for Windows 8.1. Microsoft is also said to be tweaking the look of the Xbox dashboard, with the possibility of darker or lighter themes.

We understand Microsoft is aiming to ensure Xbox 360 users can transition over to the next-generation console and interact with existing Xbox 360 users using messaging, beacons, and achievements. Microsoft will also phase out the use of its Points system with this dashboard update, replacing it with currency and gift card options. We're told that the final update will be made available, providing the public beta testing goes to plan, in August.

Microsoft is killing off its Points system that's primarily used for its Xbox console. The death of Microsoft Points has been a long time coming, and follows Microsoft's move away from the virtual currency towards cash in Windows 8. Sources familiar with Microsoft's Xbox plans have revealed to The Verge that the software maker plans to replace Points with a new gift card system.

The new gift cards will be offered in a similar way to Apple's iTunes vouchers, allowing Xbox owners to purchase true currency to be used to download content. We're told that normal cash transactions, using credit and debit cards, will also be supported. Microsoft currently offers gift cards in its retail stores, but these can only be used for purchases in brick and mortar stores. The new system will work across Microsoft's various marketplaces, including the Windows Store, Windows Phone Store, and Xbox. We understand that Microsoft is planning to unveil the system as soon as E3, with a planned launch later this year in time for the next-generation Xbox console.

The long-running, controversial rumor that Microsoft's Xbox 360 successor would demand an internet connection for all aspects of its functionality has finally been put to rest. Ars Technica is today reporting that an internal Microsoft memo — which it claims was sent to all employees working on the next-gen console — has dismissed the 'always-on' mandate. Referring to the hardware by its codename Durango, Microsoft reportedly wrote, "There are a number of scenarios that our users expect to work without an Internet connection, and those should 'just work' regardless of their current connection status. Those include, but are not limited to: playing a Blu-ray disc, watching live TV, and yes playing a single player game."

With that one, suspiciously informative line, the company has confirmed two major features of the upcoming Xbox: it will utilize Blu-ray optical media and can also double as a cable set-top box. Though it stops short of mentioning an HDMI input, Microsoft's tidbits line up nicely with what we reported early last month. The Xbox 360 never quite made good on its live TV potential, but it seems that Redmond is determined to get it right this time. We'll be hearing much more about the next-generation Xbox at its public unveiling on May 21st.

Activision is continuing its tradition of releasing a new title in its marquee first-person shooter franchise every year: the company has just officially announced Call of Duty: Ghosts will be available on November 5th. The game is being trumpeted as a new Call of Duty for the next generation of game consoles — the new Xbox and the PlayStation 4 — and it will be fully unveiled at Microsoft's May 21st next Xbox event. (The game will also be available on Xbox 360, PlayStation 3, and PC.) Considering the focus on the next generation of consoles, it isn't a stretch to connect the title's November 5th release date to the new Xbox's launch day. There's no confirmation of that, and during the last console transition games that launched on both the PS3 and Xbox 360 came out after they were first released for older consoles. Still, a November release for Activision's top-tier game franchise is no surprise, and it's a natural time for a new console launch.

When Microsoft first unveiled its IllumiRoom technology at CES, it did so in an unusual way. The software giant traditionally reveals its research projects in short, scrappy videos accompanied by research papers and a lot of technical jargon. IllumiRoom was different. The chief technology strategy officer at Microsoft, Eric Rudder, joined the Samsung keynote to showcase a video of an augmented reality projection unit designed to extend gaming onto nearby walls. The demo showed off a concept that appeared finely tuned, using what felt like a marketing video.

Microsoft described IllumiRoom as a "proof-of-concept system" and promised more information at a CHI 2013 event that starts this week. While the research team behind IllumiRoom will reveal the project's technical background tomorrow, a fresh preview video (30 seconds long) and a new five-minute demonstration (see below) have both provided some additional information. "IllumiRoom envisions a next-generation gaming console with a projector that sits on your coffee table and surrounds your television with projected light," says the preview video of the technology.

A new report from Polygon reveals that, much like Sony, Microsoft aims to make sharing a major element of its next-generation console. The Xbox 360's successor is said to include a "share" button on its controller that will upload your gaming highlights to YouTube and Ustream. Users will also be able to post these clips to Facebook and other social sites, according to the report. Microsoft's rumored approach essentially mirrors that of Sony, which outlined its plans during February's PlayStation 4 event.

Polygon also has more details on the controversial "always-on" connection that the next-gen Xbox is said to require. Will the situation be as dire as many gamers fear? It sounds like that decision will be left to individual publishers, who will make the final call on what type of connection is required to play their titles. The new Xbox can either perform a one-time authentication check — presumably allowing offline gameplay thereafter — or demand an active connection at all times. Polygon caveats that Microsoft's current guidelines for the security measure could still change ahead of next month's unveiling and the console's expected fall release.

Microsoft's next-generation console has been the subject of intense rumor and speculation for what feels like years now. Gamers have been poring over leaks, rumors, accidental Twitter updates, and a whole lot more. From the "Xbox 720" name, to a "Durango" codename, Microsoft has kept fairly quiet on its official plans for an Xbox 360 successor. That all changed this week after the software maker invited the world's media to its Xbox campus in Redmond to witness "a new generation revealed." Sources familiar with Microsoft's plans have revealed to The Verge that the company will not use the "Xbox 720" moniker, even though everyone refers to it this way. So the next Xbox is scheduled for a grand unveiling on May 21st, but what do we know so far?

Microsoft's next-generation Xbox will be revealed on May 21st, 2013, an invitation from the company has revealed. The announcement from Don Mattrick and the Xbox team, titled "a new generation revealed," will take place at the company's Xbox campus in Redmond, Washington.

Microsoft says that the event will "mark the beginning of a new generation of games, TV, and entertainment," and will stream the event to the public on Xbox.com, Xbox Live, and on Spike TV. "We are thrilled to pull back the curtain and reveal what we've been working on," writes Xbox Live's Larry Hryb ("Major Nelson").

Microsoft is working on a number of launch titles for its new Xbox console. One of the first games to launch on the next Xbox will be Ryse, according to multiple sources familiar with Microsoft's Xbox plans. Microsoft originally unveiled Ryse at E3 2011, promising an exclusive Xbox 360 release with Kinect functionality. A release has never materialized for Xbox 360 and the company has remained fairly silent about the title's progress, noting that it was still in development in mid-2012 and again earlier this year. The Verge understands that Crytek, along with Microsoft Studios, has been rewriting the game to take advantage of its next-generation console, due later this year.

We're told Ryse is designed to be Microsoft's new Gears of War / Halo mega launch title. It's set in the Roman Empire period and uses deep Kinect integration to allow players to slash and kick at enemies. We understand that Ryse will take advantage of the new body tracking improvements in the next Kinect sensor. Ryse is part of four major launch titles for the next-generation Xbox. Sources tell us that a new Forza title with "super life-like" graphics will also be made available at launch, alongside a zombie game and a family game set on an island with Pixar movie-style graphics. We're told that the family game will utilize Kinect to scan a body and generate a virtual character in the game.

Adam Orth, the Microsoft Studios creative director who came under fire for controversial comments on "always-on" consoles, has left the company. The news was first reported by Game Informer, and Polygon has independently confirmed his departure with two sources. It's unclear, however, whether Orth was fired or left his position voluntarily. Microsoft declined to comment to Polygon, saying "We do not comment on private personnel matters."

Orth tweeted that he didn't "get the drama" over rumors that the upcoming Xbox would require an internet connection to start games, comparing the situation to buying a vacuum cleaner knowing that the electricity might go out, or owning a cellphone in an area with bad reception. The issue has come to a head recently with always-on PC games such as SimCity and Diablo III suffering crammed servers and protracted outages upon launch. Microsoft later issued a statement apologizing for Orth's tweet and clarifying that he was not a company spokesperson.

Microsoft is investing in TV in a big way with its next Xbox console as part of a fight for the living room. Multiple sources familiar with the company's Xbox plans have revealed to The Verge that Microsoft will introduce a feature that lets its next-generation console take over a TV and set-top box in a similar way to Google TV. We understand that the next Xbox will require an online connection to use the entertainment services, allowing them to be always-on for streaming and access to TV signals.

The functionality will work by taking a cable box signal and passing it through to the Xbox via HDMI, allowing Microsoft's console to overlay a UI and features on top of an existing TV channel or set-top box. We're told that this is a key part of the next-generation Xbox and that it will go a step further than Google's TV implementation thanks to Microsoft's partnerships with content providers. Extended support for various cable services will be rolled out gradually, but the basic functionality will be available at launch.

Microsoft had originally been planning to unveil its next-generation Xbox details at an event in April, but The Verge has learned that the company has pushed this back to May. Windows watcher Paul Thurrott revealed recently that Microsoft is planning an Xbox event for May 21st, and we understand this date is accurate. This is the tentative date for a next-generation Xbox announcement, but Microsoft had originally planned an April 24th event.

Sources familiar with Microsoft's Xbox plans have revealed that the event will be at a small venue with a focus on providing the very first details on the next Xbox, codenamed Durango, and Microsoft's plans for Xbox in 2013. Recent rumors have focused on reports that Microsoft's next Xbox may require an always-on internet connection. Comments by Microsoft Studios creative director Adam Orth, asking why there was drama over the always-on rumors and telling people to #dealwithit, forced Microsoft to issue an official apology. The Verge understands that Microsoft has reminded employees that any communications about the next-generation Xbox must remain confidential, following Orth's comments.

Microsoft has released an official response following a number of tweets from Microsoft Studios creative director Adam Orth yesterday commenting on rumors that the next-generation Xbox will require an always-on internet connection. The employee — who very likely is familiar with the console codenamed "Durango" — said "Sorry, I don't get the drama over having an "always on" console," stating that we live in a world where every device is 'always-on.'

It's unusual that Microsoft has seen fit to respond to the tweets, reminding people that "this person is not a spokesperson for Microsoft" and it apologized, stating "we are very sorry if this offended anyone." Even more curiously, Microsoft hardly makes a gesture at denying the always-on rumor, instead saying that this is not "how we would communicate directly with our loyal consumers." Microsoft is expected to reveal the next-generation Xbox sometime before E3 this summer, however, so it won't be too much longer before we know for sure.

The rumors that Microsoft's next Xbox will require an "always-on" internet connection are gathering steam. The Verge has heard that Microsoft is indeed planning the connection requirement for its upcoming console, but this was based on information from last year; however, Kotaku's sources now say that the plan was still in place as recently as two weeks ago.

The next Xbox, codenamed Durango, reportedly won't be able to start software in offline mode, and will suspend a game or app after three minutes without connectivity. With last month's disastrous SimCity launch highlighting the potential issues faced when a game is unable to be played offline, the reaction to these latest rumors has been understandably negative.

Last month we heard rumors of an anti-used game system for Microsoft's next-generation 'Durango' Xbox console, but an additional leak this week appears to reinforce those claims. Vgleaks, previously responsible for revealing accurate specifications for Durango, has provided screenshots of an Xbox Development Kit (XDK) for Microsoft's next-generation console. We've seen screenshots leak before, but these appear to confirm a number of previous rumors.

As part of a Durango hardware overview, the leaked documentation states that every next-gen console will include a hard drive with enough capacity to "hold a large number of games." All games are said to be installable to the drive, and "play from the optical drive will not be supported." Kotaku previously suggested Durango game installations will be mandatory, and The Verge has seen information that confirms this is accurate. At present, Xbox 360 games can be installed to HDD, but they require the disc to run. Durango titles cannot directly access data on discs once they're installed, suggesting that the next-gen console may not require the disc to play games post-installation.

Earlier this week, Australian police raided the home of SuperDaE, a hacker and gaming enthusiast who notoriously tried to sell an Xbox Durango development kit on eBay last year. Speaking to Kotaku, SuperDaE (or Dylan, last name unknown) lists many other achievements: gaining access to Epic and Blizzard's systems, discovering plans for sequels to games like Homefront and Sleeping Dogs, and selling another Durango for $5,000 outside of eBay. But how much of his story stacks up? For every piece that seems inconsistent — or a weird flight of fancy — there's another that's confirmed as true: Epic, for example, sent a signed poster as thanks for pointing out security flaws that had given him access. The police and Microsoft may not be so sympathetic, though SuperDaE says he ultimately did no harm. "It's shocking that they want to ruin me like this," he says.

Sony may have gotten the jump on Microsoft in announcing its next-generation console, but odds are the public will be introduced to the Xbox 360's successor well ahead of this year's E3. Computer and Video Games is today reporting that the folks in Redmond are planning to hold a press event sometime in the month of April, two months ahead of the annual industry games show. The Verge is able to corroborate this timeframe, as we've heard similar rumblings from reliable sources.

Adding further fuel to the idea of a standalone reveal, users at NeoGAF have discovered a domain, XboxEvent.com, that's been registered by Eventcore. The agency has handled preparation work for some of Microsoft's previous preparations, so it's a good sign that planning is already underway. Let's just hope that whenever Microsoft chooses to unveil its long-awaited third console, it will be so kind as to show us what the hardware actually looks like.

Australian police officers appear to have raided the home of an infamous leaker of next-generation Xbox information. Known as SuperDaE, Dan Henry supplied over 20 next-generation Durango Xbox documents to gaming site Kotaku recently, detailing new controllers, a mandatory Kinect option, and the ability for Durango to run more than one game or application at one time. SuperDaE tweeted earlier this week revealing that police had raided his premises, allegedly alongside an FBI officer and local Australian law enforcement.

SuperDaE supplied The Tech Game with a copy of his warrant, which lists Microsoft, PayPal, and eBay as part of a criminal investigation. The Verge reached out to the West Australian Police and a spokesperson confirmed the warrant is genuine and that the officer listed as part of the warrant is employed by the West Australian Police force. The spokesperson refused to confirm any further details on the case, pending its outcome. The premises listed on the warrant is blurred out on Google Maps Street View.

Microsoft will greatly improve its speech recognition technology inside the next Xbox, The Verge has learned. Sources familiar with Microsoft's Xbox plans have revealed that Durango, the codename for the next Xbox, will support wake on voice, natural language controls, and speech-to-text. The improved capabilities mean that Xbox users will be able to walk into a room and simply say "Xbox on" to wake up the new Xbox.

We understand that Microsoft is also investigating scenarios where a Kinect sensor will detect individuals in a room and suggest appropriate multiplayer games after a user queries the Xbox using voice. The support will include natural language detection, similar to Apple's Siri service, that will let users ask things like "what are my friends playing" to receive a friends list. Xbox will also reply back to users with answers to queries, making it an improved search service too. The current Xbox 360 console lacks natural interaction and context, we're told that's a big focus of the new speech recognition in the new Xbox.

With just two weeks to go until we "see the future" of PlayStation, we're starting to hear more details on the future of Xbox. Edge magazine reports that Microsoft's new console will require an internet connection with activation codes for games on 50GB-capacity Blu-ray discs. Citing sources with "first-hand experience" of the new Xbox console, Edge says it's likely that purchased games will not be able to be resold.

We've heard rumors about Microsoft's Blu-ray plans and an anti-used-game system before, but an activation system coupled with an online requirement sounds like a key way to prevent piracy for the next-generation of console games. If Microsoft locks out the second-hand market for its next Xbox console then that will not sit well with a number of gamers, so we'd hope that Microsoft has plans to support game sharing somehow.

Microsoft didn't have a booth or even an official press event at the Consumer Electronics Show this year, but that didn't stop the company from jumping on stage twice. CEO Steve Ballmer joined Qualcomm for its bizarre opening keynote, and more importantly Microsoft’s Chief Technology Strategy Officer, Eric Rudder, joined the Samsung keynote to showcase the IllumiRoom technology. Based on a combination of a Kinect for Windows camera and a projector, IllumiRoom combines the virtual and physical worlds of a TV and living room for true augmented reality.

Microsoft claims IllumiRoom is a "proof-of-concept system," but the fit and finish of its promotional video, compared to the low production quality of typical Microsoft Research videos, makes me think otherwise. "The footage shown here is exactly what appeared in our lab without any special effects being added," said Rudder as he introduced the video last week. The demonstration starts with an actor commanding the Xbox to "go big," with a projection showing an Xbox console scanning the room before images are projected onto nearby walls. Microsoft didn't explain why it chose to demo IllumiRoom with Samsung, but the companies have previously worked together on PixelSense tables and the components for Microsoft's Surface tablet. Samsung manufactures a number of Pico projectors and has recently added the technology to its Galaxy Beam smartphone — suggesting it's in a position to offer the tech at a low-cost for the consumer market.

It has been an interesting couple of years for the Xbox, ones in which we've witnessed a shift from a hardcore gaming focus to a world of casual gaming with Kinect, avatars, and cross-platform Xbox games and services. Microsoft's Kinect sensor introduced the concept of controller-less gaming to the masses and Microsoft has started to push its Xbox Live services to devices outside of the console with Windows Phone and SmartGlass for iOS and Android.

This emerging trend isn't new, but looking at it broadly it's easy to pick out the future of Xbox as a brand and as an increasingly important tool for Microsoft to win back mindshare and consumers. Microsoft's VP of the Interactive Entertainment Business, Phil Harrison, has admitted that the company's game development teams are now multiformat studios. "We're no longer just competing with the traditional console companies, but our competitive landscape includes the likes of Google, the likes of Amazon, it includes obviously the likes of Apple," said Harrison at the London Games Conference this week.