Xbox 720 graphics | news

There's been a steady stream of speculation about Microsoft's still-hypothetical next-generation Xbox console, including persistent rumours that it could be unveiled at E3 in 2012.

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While many of these rumours appear to be more wishful thinking and educated guesswork than based on actual insider knowledge, this one might be different - it comes from Neal Robinson, the director of independent software vendor relationships at processor manufacturer AMD.

According to the Examiner, he told the US Official Xbox Magazine that there is 'a lot to be excited about' with regards to the next-gen Xbox, saying that he expected it to be capable of graphics matching the quality of Avatar, James Cameron's CGI-heavy, motion-captured 3D blockbuster.

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He also added that the artificial intelligence capabilities that the more powerful processors would offer would enable, for example, every pedestrian in a Grand Theft Auto game to have their own distinct personality.

AMD is the firm that manufactures the graphics chips for the Xbox 360 - and while nothing has been confirmed for the next-gen console, AMD would likely be the frontrunners to supply the processing power for that too. So this seems considerably more plausible and well-founded than many other current whisperings.