The Xbox 720, prospective successor to the Xbox 360 games console, could be on sale as early as next year. And Microsoft may even use the CES consumer electronics trade show in Las Vegas from 10 January to announce its existence.

Speaking to games industry website Edge, a source has revealed that Ubisoft Montreal (the development team behind Assassin's Creed Revelations) is "hard at work on target boxes based on the intended specifications of Microsoft’s Xbox 360 successor". It is using PCs stacked with off-the-shelf components supplied by Microsoft itself, and there is a claim that the GPU has been or will be custom-built by AMD.

It has also been suggested that actual next generation devkits will be delivered to development houses before the Christmas break this year, leading Edge to make an experienced guess that retail units will arrive in 2012.

The site also claims that one developer has even started work on software for Sony's next console, currently dubbed PlayStation 4.

There are few other details on either new machine as yet, but with Pocket-lint attending CES in force, we'll be sure to pass on all the juicy gossip on both the Xbox 720 and PS4.

Microsoft devs working on new Xbox console

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