Xbox 720 to get Kinect 2 and Blu-ray drive

Microsft's much-rumoured Xbox 720, mocked up by Joseph Dumary above, is shaping up to be a killer home entertainment device by the time it (maybe) launches in 2013. The latest leaks suggest that the Xbox 720 will bring the fight to Sony's Playstation 3 by finally including a Blu-ray disc drive – even though the Xbox 360 showed no love for Blu-ray films.

In less appealing news for the cash-strapped amongst us, Kotaku's secret sources also reckon that the Xbox 720 will have some built-in anti-used games system so that the drive won't play second hand titles. That could mean Microsoft linking titles to Xbox Live accounts or some other kind of lockout. Boo hiss.

OK we sandwiched that bit of potentially annoying news in between two exciting rumours so here's the last Xbox 720 detail you're getting for now: Kotaku's talkative spies say that the Xbox 720 will ship with a new version of Microsoft's motion-detecting kit Kinect, which because we're so imaginative we'll call Kinect 2. And we might get a smaller controller. Get saving, and you never know Microsoft might treat us to a prototype at E3.