Microsoft developing two variants of Xbox 720?

We seriously hope Microsoft does not name their next-generation Xbox console as Xbox 720 but its a debate for another day coz a new report claims Microsoft is working on two different variants of the new Xbox.

One would be a cheaper “along the lines of a set-top box” with Kinect that will be targeted at users who want to use Xbox as a streaming platform. Another SKU will be a premium model loaded with all the goodies you’d expect from a gaming console like an optical drive, hard disk and backward compatibility.

Needless to say the premium model, if true, will be priced higher than the feature SKU.

Xbox 720 is rumored to show its face at CES 2012 early next year.

[Via OXM]

• Xbox One releasing on November 22
• Microsoft disables mandatory online check, allows sharing of physical discs
• Microsoft releases new Xbox 360 with Xbox One-like design
• Microsoft Xbox One releases this November for $499.99