More Xbox 720 rumours have been circulating around the web as of late, with BGR recently claiming that a “source with knowledge of Microsoft's plans”, had revealed to them that the Xbox 360 successor will be revealed at E3 2012.

The source apparently comes from within Microsoft's Entertainment and Devices Division, and if the information is correct it means we'll be seeing a new Xbox in less than a year. The source also said that Microsoft has been working on the new console since 2006, barely a year after the Xbox 360's launch.

A few weeks ago we reported on another claim of a speedy Xbox 720 launch, with a high-ranking employee at developers Crytek stating they were already developing games for the next-generation console.

Apparently the company is already developing TimeSplitters 4 for the device, with reports claiming that DirectX 11 will be used as the basis of the system, whilst the game itself is being built on the advanced CryEngine 3. The Crytek source also claimed an E3 2012 reveal to be likely.

And while many sources have now claimed that the new console is just beyond the horizon, Microsoft themselves have been stoically denying any rumours. Its plans are definitely in a grey area at the moment, especially since a Gigwise report recently stated that a senior Microsoft source had said that the Xbox 360 and Kinect had another six years left.

This standpoint has been seen several times from the company since it launched the Kinect motion sensing peripheral for the Xbox 360 last year, no doubt trying to extend the lifetime of the device.

Microsoft has sold some 54.4 million Xbox 360's since its November 2005 launch, and only time will tell whether the (tentatively named) Xbox 720 will be able to keep up or if Microsoft's gaming arm will go the way of Sega.