The latest rumor for Xbox 720 features a 16 core CPU powered by IBM, making it a hardware behemoth even amongst high end PCs.

According to Xbox World magazine, the extra processors would offer mind blowing graphics and enough firepower to support Microsoft's next gen of Kinect games. If this is the case, then Xbox 720 will have the capability to have its motion controllers and sensors details track players to the fingertips.

Based on reports from Forbes, the Xbox 720 will carry a hefty price of $500. But considering the advanced hardware capabilities, it may be worth. Last month, Microsoft announced that it seeks to be an entertainment machine in living rooms across America. It might be no surprise that with Xbox 720's juiced up specs, this next-gen console will have a slew of other capabilities. It will be interesting to see how much more the console can do aside from rendering video games.

Xbox 720's 16 core CPU would make Microsoft's console a premiere piece of technology. In comparison, the Xbox 360 uses three cores of the main CPU and runs them at 3.2 GHz each. The next-gen Xbox processor will work differently as it functions independently to draw different objects simultaneously. The core processors would also be dedicated to various tasks in the operation system and Kinect.

Game developers would be placed in challenging positions to construct with Xbox 720's new set of CPUs. Based on reports from Ars Technica, current PC game titles have difficulty maxing out three cores running with high-end Intel Sandy Bridge processors.

The Xbox 720 new processors will make running shaders that render 3D objects a breeze. The graphics will look more realistic and loading time would be greatly minimized. It is rumored that the console will support a 3D display for full 1080p HD graphics. To compete with Nintendo's Wii U revolutionary controllers, Microsoft may be launching a touchscreen controller of their own which also serves as a remote control and web browser.

Gamers will be awaiting for an official Xbox announcement, though Microsoft said that they have no plans to reveal a new console at the next E3 gaming conference.

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