Microsoft's next-generating gaming console - Xbox 720 or whatever the name will be - is back in news again. We have been hearing rumors about next-gen Microsoft's gaming console since last year though Microsoft has stated that Xbox 720 will not be seeing the day of light in 2012. The latest rumors indicate that Xbox 720 is apparently being manufactured in a Texas Plant and it could release in 2013.

According to a report by IGN, Xbox 720 is in manufacturing phase at Texas factory of Flextronics - the same company that handled the assembly task of the original Xbox and Xbox 360. Additionally, folks at IGN also claim that Microsoft has created a separate test group from the rest of company that is dedicated in testing the new Xbox, and also marketing in future. The production of next-gen Xbox began after the hardware and software components were analyzed.

The new Xbox units, being secretly developed, are development kits that the company will hand over to game manufacturer, so that they can know about the platform they will be working with in the future. There are high chances that over a dozen game titles will be made available at the time Microsoft releases its next-generation gaming console.

"Xbox 360 has found new ways to extend its lifecycle like introducing the world to controller-free experiences with Kinect and re-inventing the console with a new dashboard and new entertainment content partnerships. We are always thinking about what is next for our platform and how to continue to defy the lifecycle convention. Beyond that we do not comment on rumors or speculation," said Microsoft, in a statement to IGN, declining the rumors about its new Xbox.

Meanwhile, the rumors are about 2013 release date of Xbox 720 are also flying thick. Though Microsoft has ruled out the E3 or 2012 release, but 2013 release date rumors still stand firm. If these rumors are to be believed, then we could see the new Microsoft gaming console at the holiday season in 2013.

Microsoft is also subsidizing Xbox 360. The $99 Xbox 360 with Kinect Bundle kit is set to unleash within a week, fueling the rumors that Microsoft is cutting short the prices of its current flagship gaming console prior to the release of Xbox 720.

(reported by Johnny Wills, edited by Dave Clark)