The follow-up to the Xbox 360 will not include a disc drive, according to MCV.
The console, which is set to release in 2013, will offer “compatibility with some sort of interchangeable solid-state card storage.”
It is not known when the new hardware will be officially announced, though E3 2012 (5th – 7th June) is a high possibility.
Microsoft said they do not comment on rumour and speculation.
The Xbox 360 was Microsoft’s second video game console, which released in December 2005. Microsoft later launched the Xbox 360 S, a slimmer version of the console, in 2010 (pictured).