The next generation Xbox is expected to arrive in 2013, but the rumor mill is already making noise.
The Xbox 720 aka Durango is supposed to hit the market in 2013. Microsoft is though rumored to already show the Xbox 720 at the E3 2012 in June. It is expected that the new Xbox 720 will have a new touchscreen controller, better motion and voice controls, better 3D graphics and maybe no disc drive. The latter just got "confirmed" today by MCV. They report that Microsoft told partners that the Xbox 720 has no disc drive. There is supposed support for some sort of interchangeable SSD card.
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Rumors that the Xbox 720 will just use downloadable games and content have appeared already last year.
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This report will be updated with new Xbox 720 rumors as they become available.