According to EuroGamer, multiple reports suggest that Microsoft will hold an event on 21st May (delayed from some time in April as originally planned) to announce their next Xbox console. The console will reportedly cost $500 at launch, or $300 with some form of annual subscription.
Rumours that the system will require an internet connection to function have caused enormous controversy, most recently with the remarks of Microsoft creative designer Adam Orth, who said, among other things, that people in areas with poor internet connection should relocate, and compared the anti-always online mentality to not purchasing a vacuum cleaner due to powercuts.
Microsoft analyst Paul Thurrot says that the always-online feature has been mentioned in earlier documentation, but he is uncertain as to whether it will be present in the final product.
Thurrot also claims that two other Xbox systems have been in development: Yumo, a system for more casual entertainment apps (which may no longer be in development) and Stingray, a new $99 model of the Xbox 360, which could imply a lack of backwards compatibility on the part of the next Xbox.