Microsoft working on next generation Xbox 'Durango'?

Reports from IGN suggest that Microsoft is working behind the scenes on the next generation of the Xbox console, codenamed 'Durango'. As per the report, Flextronics recently began the assembly of the console's hardware at its Austin, Texas branch. This is the same company that put together the original Xbox that debuted in 2001 and continues to manufacture hardware for the console today.

The report also claims that Flextronics created a new testing team that was functioning away from the main company. Their job was to perform software, hardware as well as marketing tests for the next Xbox. Post testing, they started manufacturing the consoles.

"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 rumours or speculation," Microsoft told IGN.

Reports further suggest that even if these Flextronics made machines do release, they are more likely to cater to game designers and developers and may not be available for end-users to play games on. Microsoft  has made it clear that it will not reveal 'Durango' at E3 in June this year.

Microsoft recently announced the release of the $99 Xbox console bundle for primarily streaming and downloading content, available at a subsidised cost of $15 per month.