According to a Develop Online article EA already has their hands on the basic hardware build of the next Xbox. (I refuse to call it the Xbox720.)
EA is rumored to be working on the Alpha software that will "over-take" this generation of gaming.
Develop reports that the hardware was shipped in a PC shell that hid the inner workings; “Quite often when new consoles come around they’re packaged into a PC shell, but actually what’s inside is an entirely new console,” a senior, trusted, well-placed source said.
The Next Xbox has been rumored ever since 2006 when the 360 launched. Logos, prototypes, and rumors litter the interweb but only a select few shareholders know the details about Microsofts third console.
What I Would Like to See in the Next Xbox Console:
There are rumors that Microsoft will announce the plans of a new console at E32011, but many sources are calling a bluff on this one. The next console from Microsoft is expected in 2012.