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Microsoft has already begun work on developing the Xbox 720. Peter Moore, Ex boss of Interactive Entertainment Division at Microsoft, confirmed that “the production team from the Xbox 360 is working on the next Xbox 720 [our pet name], and they’re looking into what kind of CPUs will be available on the market in 2011-2012″. In fact, development on the Xbox 720 might have been going on for longer than we think, as Robbie Bach, the President of Entertainment & Devices Division at Microsoft, said, “We started thinking about the next generation before we shipped the Xbox 360″. So, we can be dead certain that the X720 is already in development.

We could see a huge design improvement from the original Xbox, but what should the next generation Xbox 720 console look like?

According to Tai Chiem, the Xbox doesn’t necessarily have to look practical but rather it needs to look as if it came from the future. His take on the Xbox 720 gaming console is to make it look like a spaceship we have seen in SciFi films as we grew up, with a skeletonized frame and acrylic cover.

He went on to make sure Microsoft’s branding would be apparent all around, so no one will confuse it with any other console. It definitely looks cool, but does it really look like it could catch on? It seems to much like a fashion item and not a game console, let alone Xbox. Also, how would you manage to carry it from place to place, will you pass it around like a football?

One major advantage in this Xbox design is the lack of the Red Ring of Death. Does this mean that Microsoft will actually provide a console that will work as promised, or will the entire cover turn red and strike fear in Xbox fans?

If you would rather see designs of true and functional Xbox consoles, check out the Steampunk Xbox 360 mod, the Hellboy Xbox 360 or even an Xbox 360 Mod with LCD Screen to provide a sort of portable gaming experience.