Xbox 720 – 3 questions gamers should be asking about Microsoft’s next console

Surely Microsoft is working hard to get the next generation of Xbox close to production. Supposedly, Sega has decided to take another hit on the console market, Sony is gearing up for the PS4, and Nintendo has found its niche. The question is, what will the next Xbox, currently known as the Xbox 720, bring to the table?

Xbox 720 – Digital distribution or Blu-Ray?

I’ve seen a lot of buzz about solid-state drives, but honestly, I think Microsoft will go with a larger 1TB drive in favor of storage capacity and lower price, rather than go all out for speed. Microsoft already has some of the largest data centers in the world and an extremely impressive Xbox Live network infrastructure. Larger units would make digital distribution a viable option, allowing for greater convenience and more impulse purchases.

We can also look at Microsoft’s current improvements with Xbox 360 to guide us. We will surely see TV and movie streaming as an even bigger part of the Xbox dashboard. Microsoft tends to favor the second-mover strategy, letting companies like Netflix and Hulu take the risks and then add their services to their own intellectual property. I’m sure they also feel the need to compete with Google TV and Apple TV before they gain too much market share. But whether these services can really gain more traction than their current competition is another post in itself.

Speaking of competition, Microsoft will probably have to go the extra mile and finally add blu-ray support for the Xbox 720 launch. I’m sure most execs are still pretty bitter about the HD-DVD war, but there’s no way that abandon support for physical media if there is any chance that store sales will remain competitive against digital distribution.

Microsoft Kinect – New version for Xbox 720 launch?

Regardless of the success or failure of Kinect, I’m sure that Kinect will play an integral role in the design of the Xbox 720. Microsoft has already invested too much money to even think about retiring. I doubt we’ll see a new version of the Kinect at launch, but I wouldn’t rule out a second version of the camera a year later. I also hope that Microsoft will ditch the outdated AA battery scheme that they have used for their current drivers. Loading directly from the console is the way to go. Personally, I think they’ll choose bluetooth for their headset, which could then be used in conjunction with Microsoft’s new Windows Phone 7 operating system and accompanying hardware.

3D Games – No room for glasses on the Xbox 720?

The Xbox 720 will almost certainly support 3D at launch, and it’s likely that all next-gen consoles will support the new glasses-free 3D technology that’s inching toward the market. Will Microsoft enter the 3D TV market to complement its new console? It’s doubtful, but such 3D support is sure to boost competition gains for those already in the TV market, like rival console Sony.

We’re still a few years away from the next generation of consoles, but with Sega’s new console in the offing, it should be an interesting round. Microsoft has learned a lot this generation about what works and what doesn’t, so everyone should be excited about the launch of the Xbox 720 and the Xbox Live experience it will bring. The two biggest wildcards will be what physical media the Xbox 720 will support and whether or not Kinect’s performance will make it an integral part of the Xbox 720’s design. What do you think?