Originally Posted by Phoenixlight
I hope that they use something equivalent to an i7-2700 and HD6990 or better for the hardware.
not going to happen. Microsoft has stated their desire to release a slimmer/sleeker console (ie one they won't have to price @ $500 and/or lose money selling each unit like they did with the 360 or Sony did with the PS3), this basically means less powerful for the time-frame relative to what the 360 introduced upon its release. Given the fact that this current rumor suggest a holiday 2012 release, then technology simply won't be able to be shrunk enough to fit anything of noteworthy power.
Like I said before, I don't expect anything substantially more powerful than what Nintendo is planning with the Wii U. And with Nintendo as the newly established market leader, it would make sense for Microsoft do something like that, as it would make things easier for developers for crossing platforms, and it would also place tremendous pressure upon Sony to do something or get left behind.
Besides, current consoles are still receiving so much attention despite their lack of hardware capability, and players really aren't complaining about graphical prowess, graphics really are "good enough" at the moment. Really, all we need from a next gen console is the ability to go from 720p to 1080p, and that hardware transition really isn't that big of a leap.