UPDATE: The X-Surface report has been uncovered as a fake, with the 'source' revealing himself to be a hoaxer.
It would seem that Microsoft are prepping for something large. Instead of delivering a next-gen console called the Xbox 720 or Next-box, it looks like MS will be reverting to the simplest title of all and bringing all of their next-gen initiatives under one umbrella, with the home console hub at the heart of it: Xbox.
According to Pocket-Lint, who've apparently been speaking with "a tipster very close to the project who, naturally, wishes to remain anonymous", the new Xbox will "be seen as a hub to a number of devices to carry an 'X' branding, one of which will be the much-rumoured 7-inch gaming tablet, which Pocket-lint has learnt will be called X-Surface, not Xbox Surface as previously thought".
For the Xbox itself, the tipster's leaked specifications matched up with previously rumoured information - that Microsoft are working with AMD when it comes to the two processors. "The CPU will be 8-core, as previously rumoured, although each core will be running at 1.9GHz instead of the 1.6GHz reported," claims the report. The graphics chip has again been pegged at 800 MHz, with Pocket-Lint's source telling the site that "one benchmark used internally has been a custom build Watch Dogs E3 demo which runs at 55-60 FPS with only five cores at 100 per cent."
Apparently, the new Xbox will not be running Windows 8, however, although the OS will retain the tiled look. The OS will also require two cores to run, if the tips are true and will remain active in the background in order to provide full multitasking functionality. The source described it ass being "very much akin to Nintendo's offerings on 3DS and Wii U - but on a far larger scale", revealing that MS are planning to "include video calling in games (with users able to determine which corner of the screen to place the feed), and the ability to take screengrabs to save to hard drive or SkyDrive". The controller has allegedly undergone a few little tweaks, but is broadly similar to that of the Xbox 360 (huzzah!) with th same button placement.
As for the X-Surface, well the source stated that it will not have a desktop as part of its operating system, and that it's OS will be custom-made rather than simply adhering to Windows 8 or RT. Apparently the X-Surface will instead be designed to access the "games, music, and video hubs of the new Xbox, but will not have any apps of its own", suggesting that it might resemble something a little like the Nvidia Shield. Pocket-Lint also reported unconfirmed rumours that "the X-Surface will have a proprietary 2.4GHz wireless protocol for compatibility with Xbox 360 controllers and, it is said, future control devices."