Apparently, Microsoft’s employed electronics manufacturer, Flextronics, has begun production after conducting comprehensive marketing, software and hardware test of the next Xbox.

This doesn’t mean that the next Xbox, or ‘Durango’ as the rumored codename goes, will be ready to be packaged and shipped any time soon. Microsoft may very well be producing them to pass it onto developers so they can start building their games around it.

When IGN inquired to both Microsoft and Flextronics about the rumor, the latter spun an oft-quoted “we do not comment on rumors and speculation”, while the former decided to keep mum.

The game will feature the original arcade version as well and can be played with Kinect if you want to. It will also come with bonus Avatar items, Gamerpics and full watch feature.

There is no word on a price yet. Here’s trailer:

“With the growth of Xbox Live, advertisers no longer have to choose between digital and TV advertising – we’re offering the impact of TV and the interactivity and addressability of digital in one platform,” said Xbox Live advertising GM Ross Honey.

“As more and more industry leaders like ESPN work with us to help monetize their content on Xbox Live, TV media buyers win with the ability to extend their standard TV spots to this highly engaged consumer audience.”

The reason of this is because of us, apparently. Microsoft says it’s Xbox Live advertising revenue has shot up by 142% since 2010 as US Gold Subscribers spend on average 84 hours a month signed into Xbox Live.

The use of Live’s entertainment app has also surpassed online gaming usage for the first time.

Microsoft will take the stage first on June 4 at 10am PST, which is 10pm in UAE/Saudi. Sony will host their conference at 6pm PST on the same day, which is 6am in UAE/Saudi.

Microsoft and Sony both are expected to drop massive announcements during the conference. Despite defiantly denying any possible next-gen console showing, hopes of a sneak-peak still floats the hearts. Nintendo is expected to show more of WiiU with possible exclusives to go along with it.

“We expect hardware sales to rebound once price cuts are implemented, but expect a recurrence of the dip next holiday, partially buffered by some modest contribution from the introduction of the PS Vita in February and the Wii U later this year. Recent slowing of Xbox 360 hardware sales could cause Microsoft to consider a price cut by E3,” he said to GamesIndustry International.

“PS3 hardware sales should continue to lag those of the Xbox 360, and we expect sales to trend downward by 10 – 20% monthly, until Sony cuts prices once again, likely at E3.”

While Nintendo will most surely showcase the WiiU at the gaming event, Microsoft’s unveiling of its nex-gen Xbox is not expected, Patcher said, at least not until the Xbox 360 core model reaches a price point below $200.

With MarkMonitor in tow, a company that helps secure domain name registrations, Microsoft has bought all of possible combinations for ‘Halo Infinity’ and ‘Multiplayer’, even .mobi which before today I thought was an eBook format.

Here’s the list of domain names it has snapped up: HaloInfinityMultiplayer.com; HaloInfinity.org; HaloInfinity.co.uk; HaloInfinity.mobi; HaloInfinity.de; HaloInfinityMultiplayer.net; HaloInfinityMultiplayer.org; HaloInfinityMultiplayer.co.uk; HaloInfinityMultiplayer.mobi; and HaloInfinityMultiplayer.de, as well as spartanops.org and Morethanjustamap.com.

Fans will recall that ‘Infinity’ was an exclusive map for the only version of Halo on the PC, Combat Evolved. Deciphering clues from the domain names, such as you know, ‘morethanjustamap’, it seems that Microsoft is planning to port over the map to Halo 4 and it will be, ahem, more than just a map.

Let’s wait for some official news.

The events will take place in Mall of the Emirates and Dubai Mall where attendees stand a chance to win a limited edition Star Wars Lightsaber.

There is a surprise to be had on April 5th at the Mall of the Emirates and April 6th at the Dubai Mall, and the publisher tells us its something not to be missed by hardcore Star Wars fans.

Kinect Star Wars for Xbox 360 released yesterday. You can catch the launch here.

The dual-GPUs will work differently than it does on the PC. Instead of rendering the same object by turn, the cores will be able to render different objects simultaneously.

Among the new bout of information, the most worrisome is the need for an always-on Internet connection. Apparently, this is implemented to curb piracy.

Sources have also said that the next generation of Kinect will be built into the device as standard.

As parting gift to its players, Bungie released an enormous info-graph featuring statistics on how Halo was played since the data service’s debut eight years ago.

“We have followed your careers with great interest here on Bungie.net, and you have gifted us a mountain of heroic moments to memorialize. It is with a sense of awe that we step back and admire the impact that you have had on our games, and upon our studio. Thanks for sharing your stories with us,” Bungie  said in farewell post.

You can find the info-graph below:

It will look something like this. But without most of the stuff. And with an Xbox 360 S.

There are no details on the SKU, but from its price tag we can guess that it will be a bare-bones version of the console, having just enough tools to pass-off as an entertainment and casual gaming hub. It is unlikely Kinect will be bundled with it.

Microsoft has not been reserved in saying that they are actively targeting the home entertainment bracket. Such a cheap system seems like the next logical step towards that goal. We can already see the lure of a $100 system that can watch movies, stream TV content and play games. However, this is just a rumor, and like any rumor should be taken with a pinch of salt.