A source inside Microsoft says that the Xbox 720 console that Microsoft will reveal in late May will not require an always-on Internet connection to work, despite recent speculation about such a feature.
The insider, who is worried about giving away his identity and who has posted the information on Pastebin, also says that the next-generation console will ship with an entire Xbox 360 system-on-a-chip, which will make the device backwards compatible and will deliver increased processing power.
The source also says the specifications that have already been leaked online are right and that the new version of Kinect that will ship with the Xbox 720 will eliminate all lag.
Apparently, the new home console will use an operating system built around Windows 8, without the desktop sections.
An official reveal from Microsoft is widely expected to take place on May 21.