While Sony PlayStation 4 rumors seem to be on the slow side, rumors of Microsoft’s next-generation console are starting to heat up. We had previously reported that the Xbox 720 (or the “loop”) might be making an appearance at CES 2012, and if you needed more proof that the next-generation console could be debuting in 2012, a source has revealed that Ubisoft Montreal is currently working on games for the new console.

The source revealed to the Edge that Ubisoft Montreal was working on new games for Microsoft’s next-generation console, and the source came to this conclusion due to the computers that were being used to create these games. It seems that these computers have been “kitted out” with the new chips that will be making its way onto Microsoft’s next-generation console.

In terms of hardware, it seems that the new console will be using a graphics card from AMD, along with a six core processor which will hopefully prevent another “red ring of death” situation previously faced on earlier Xbox 360 consoles. Ubisoft has naturally declined to confirm this rumor, stating that “We do not comment on rumor and speculation”.

Could Microsoft’s next-generation console really be debuting at CES 2012, or are all these rumors simply building off each other? Well, for now we suggest taking them with a grain of salt and wait for CES 2012, which will be in a couple of months.

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