Technology blogger MS Nerd has reported the Loop title for the long-rumoured new Xbox and claimed that the console will be "far cheaper" and more focused on the Kinect system.
MS Nerd says the console will feature a modified Win9 core, featuring a custom-made ARM-based processor and dedicated cores for graphics, AI, physics and other tasks.
The blog states: "With a heady mix of rumors, tips and speculation, I am now stating that Xbox codename 'Loop' (the erstwhile XboxTV) will indeed debut a modified Win9 core.
"It will use a Zune HD-like hardware platform - a 'main' processor with multiple dedicated assistive cores for graphics, AI, physics, sound, networking, encryption and sensors."
MS Nerd also claims that the new Xbox will be smaller and much cheaper than the current Xbox 360, gearing the product for "Kinect adaptation".
A launch date for the console is not clear, although a report emerged last month indicating that Saints Row 4, Alan Wake 2 and other games are already in development for the next Xbox.
However, an industry analyst has claimed that Sony will release the fourth iteration of the PlayStation before Microsoft launches its new home console.