With Nintendo throwing the first punch in the newest next-gen console race, Microsoft was sure to deliver a follow up. The newest Xbox is rumored to be delivered by the holidays of 2013. With a 70 million user base with the Xbox 360 and sales still very strong, Microsoft has been hesitant to release a new console. But, with the competition strong it’s time to debut the new machine.

Sources can’t say when or where the new console will first show up, at E3 in June, or at a stand alone party similar to the Surface launch. Time will tell. Cost? Unknown, but a huge factor when people are making their purchases, especially in this economy.

Since the release of the Xbox 360 in 2005, the gaming market has changed, as casual games played on tablets and phones gain in popularity. Microsoft introduced full-body motion controls to console gaming with the Kinect. More than 40 million of the 70 million Xbox 360 customers also have Xbox Live online subscriptions, many of which are used to watch TV and movies, rather than play games.