Some of the potential decisions facing Microsoft on the next Xbox has ignited the rumor mill. The biggest of these rumors suggests that the new console could, in fact, be running a custom flavor of embedded Windows using Windows 8 or Windows 9.

As for the processor, believe it or not, the company is considering a processor based on the latest ARM technology with multiple cores and clocked much higher. In addition, the new console will continue to feature the Metro interact and it will have direct support for Silverlight.

The news even could mean that the development is much further along than anyone really might have thought. Whispers are now suggesting a showing at CES as possible; but not to be outdone, other sources say that an E3 showing is more likely.