As we draw closer to the next generation of gaming consoles the rumor mill has no time to rest as the latest rumor update indicates some interesting next-gen Xbox insight. According to an industry source close to Kotaku Microsoft’s next console will contain Blu-ray disc technology. In addition, the new console is said to introduce Kinect 2 containing its own on-board processor.

Microsoft is supposedly making the consoles new controller smaller than the one used with Xbox 360. As we draw closer to E3 2012 there should more updates surrounding Microsoft’s next robust console.