A Microsoft's employees' reference to the "new Xbox," thought to be referring to Microsoft's next-generation console, was a misunderstanding. After the news broke across the web, Microsoft explained that the statement referred only to an annual fall Xbox 360 update including Xbox Music, video and games on Windows 8, and the second screen app Xbox SmartGlass. However, Microsoft has narrowed down the release date for its next-generation console: before 2014.

CVG claims development kits were issued to various UK developers mid-2012, according to the source speaking to the gaming website. Recently Eurogamer spoke to an anonymous user in possession of a Durango - the codename for the next-generation Xbox - development kit. News on next-generation development kits has mainly focused on Wii U, not the Durango Xbox.

A 56-page document also leaked earlier in 2012, revealing Microsoft's plans to make the next-generation Kinect hardware an all-in-one set-top box rather than just a gaming console.

Microsoft is widely expected to unveil the next-generation Xbox console at E3 2013, ahead of a holiday release. The Xbox 360 launched in the winter of 2005. Microsoft is looking for a central marketing group director. The company claims that it will "release new versions of all our most significant products including Windows (Client, Server, Phone and Asure), Office and Xbox, along with completely new offerings like Surface" over the coming 18 months.

Consumers may see Microsoft's official response as covering tracks, keen to continue highlighting its current Xbox console. Kinect has struggled to appeal to the core gamer - its killer app is probably Dance Central - while partners including ESPN and the BBC led games for more casual players for the Xbox 360.