*Disclaimer: The information hereinbelow is taken from an Xbox 720 design document written in 2010. Some of the details will have been revised, perhaps extensively. For more information on the reliability of the data, go here
6. The Xbox 720 battle plan
As expressed in the disclaimers, Microsoft will have altered the finer points of the 2010 roadmap, yet the underpinning Xbox 720 strategy will not have changed.
The company that sought the core market with the first Xbox, then expanded to the casual audience with the 360, now wants to produce a living-room device as essential as the television itself.
The competition is Apple, Samsung and Google as much as it is Nintendo and Sony.
TV, movies, games and music will be processed on the system and streamed over Wi-Fi to tablets, computers and phones. Users can record live TV in the background while games are played, while customers will be given the option to overlay internet content - such as news feeds - across the screen.
Microsoft's next console will be a super-high-spec system engineered for a ten-year lifecycle. Microsoft will use Xbox Live, and an ambitious cloud-based service, to constantly refresh the Xbox 720 with new content when the system in low-power states.
It will dominate a household's Wi-Fi bandwidth, streaming movies to tablets, as well as high-spec augmented reality images to Kinect Glasses.
The Kinect sensor will be bundled as pairs for high-precision family motion control, with a sensor perceptive enough to register props and allow for an 'invisible user interface'.
Xbox Live tiers will be sold like TV packages, with a range of content on offer depending on subscription.
The system will be released late in 2013, at $299. Microsoft's IEB division believes it can create a positive gross margin each year in the ten-year cycle.