This is absolutely huge if it can be believed. Develop, who are usually very reliable, are quoting an anonymous source as saying that EA have a new Microsoft console on some desks and are preparing first wave software for the machine already.

The suggestion is that Microsoft might be preparing an announcement at E3, just in time to steal Nintendo’s thunder on their Project Café (Wii 2) announcement. According to Develop’s source, the new console is so early in its development that it doesn’t even have proper housing yet – it’s been delivered inside PC casing. We assume that this is indeed normal procedure for the development stages of any new hardware of this type.

This new rumour, coupled with the Microsoft job advertisements for hardware engineers from earlier in the year, would seem to indicate that new hardware development is well and truly underway. Just how early in that development we are is another matter but large publishing partners would presumably get access only when the final specification and build blueprints are locked and there’s only testing and refinement to go.

E3, then… That’ll be worth keeping an eye on.

http://www.thesixthaxis.com/2011/05/06/microsoft-readying-new-xbox/

Posted: May 06, 2011 1:01 pm