Everything We Know About the Xbox 720
Let's hope it's not called Xbox 720.
Confirming long-standing rumors, Microsoft has said it is ready to unveil the next-gen Xbox at a special event on May 21st. Here's all we know about the system:
Xbox What?
Microsoft might have placed themselves between a rock and a hard place
naming the current Xbox, the Xbox 360. As such, it can't possibly call
the next-Xbox 'Xbox 3' or even 'Xbox 4', but rumors in the past year
have suggested multiple names for the new system, with the most popular
being Xbox 720, Xbox 8, and Xbox Infinity, the latter being the most
obvious (and the better) choice. In fact, if this Reddit user is to be believed, Microsoft might call it just that: 
Specifications
Kinect 2.0
It's a given that Microsoft will also reveal the next-gen Kinect on May 21st. It will be tightly integrated with the system than ever before, offering functionality like voice commands and facial identification. Kinect 2.0 will be substantially more powerful than its precedessor, with the sensor capable of tracking six players simultaneously and detecting individual fingers, gestures and even facial expression. One of the extreme rumor surrounding Kinect 2.0 is that it will be a mandatory for the next-Xbox to function, but that's probably a long stretch.
User Interface
Xbox 720 is expected to run on Windows 8, or at least a variation of it. This will allow Microsoft to tie the experience with its other platforms, offering a connected ecosystem under the Xbox Store brand.
Microsoft has already pushed the foot through door with Xbox Smartglass that allows users to manage content across multiple devices.
Xbox Smartglass
Speaking of Xbox Smartglass,
expect it to play a major role in how you will use your new Xbox. The
Smartglass, which runs on your mobile devices, is not only capable of
syncronizing content across platforms, but can also work as a secondary
information screen while playing games or watching movies, much like the
Wii U's GamePad. Some of the earlier rumors suggested that Microsoft may develop a new Xbox controller with a Smartglass-powered screen built into it.
On-the-go Game Installs
The Xbox 720 will be capable of installing games as you play them,
limiting lenghthy load times and allowing players to jump into the game
without any waiting. Sony will be adopting a similar system for the
PlayStation 4 called PlayGo.
Multitasking
The Xbox 720 will make use of "suspend" and "constrained" states to run multiple games at once,
making it possible to pause one game and launch another. The same goes
for apps, such as social networking tools and video software, which
currently require fully closing down another program. So imagine switiching between a game of Call of Duty and Halo without having to get up. This already sounds amazing.
Skype
Microsoft bought Skype for $8.5 billion. That's a lot of money to not have the technology used in its most popular product. Expect seamless integration via Kinect where users will be able to make calls and video chat from the Xbox directly. It could potentially also replace Xbox Chat, although I wouldn't expect a whole lot of changes at least on the front-end for games.
Games
As Microsoft has yet to announce the Xbox 720, developers may have
refrained from confirming their next-gen titles for the platform.
However, games such as The Witcher 3, Assassin's Creed IV and Watch Dogs
have all confirmed to release on the PS4 and as well as on "next-gen
consoles", so we can expect those to release for the next-Xbox. As for
exclusives, a recent rumor suggested a new Forza game, and Ryse, but
other than that it seems unlikely that any of Microsoft's other big
sellers will make it for launch day. It will be too soon for a new Gears
of War or a Halo which just saw releases, but Microsoft has always been
strong on timed-exclusives so expect the next Call of Duty to be on
that list. EA might show up with FIFA 14 as well.
Always-on Connection
This one's been in contention a lot lately. Xbox 720 may or may not require an always-on Internet connection to function, a debate that took an ugly turn when one of Microsoft's employee went on a rant supporting the feature on Twitter. Microsoft were quick to apologize to its fans for it but did not choose to clear the issue.
Block on Used Games
Could the Xbox 720 block used games? Potentially, although there
has been no sufficient information to back this up. If Microsoft does
indeed choose to block used games, it will be a bold move in an
uncertain direction. Fans are sure to loath it but developers might just
welcome the feature.
Pricing and Release Date
According to veteran blogger Paul Thurrot,
Xbox 720 will cost $500 and will release in November. Microsoft may
also sell the Xbox 720 at a cheaper $300 price tag and tie it up with a
subscription model of sorts. 
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