The next generation Xbox console is currently sitting on a desk at EA and Microsoft is set to officially announce it at this years E3 according to "a senior, trusted, well-placed" source. This source told respected publication Develop that the new hardware was sent to EA last month so they could get to grips with the tech and start developing software. The hardware is said to be a very early build housed inside a PC case. The source said; "Quite often when new consoles come around they're packaged into a PC shell, but actually what's inside is an entirely new console," "Why let Nintendo steal the thunder in June? It doesn't want to lose momentum. That's why I think Microsoft is rushing to make an announcement at E3." "Kinect will keep the 360 going for a couple of years, but Microsoft knows that if it slows down now it will face trouble." There is no conformation from either company on how valid this source is so take it with a massive pinch of salt. We will just have to wait until this years E3 in June to find out.