The newest set of next-generation Xbox rumors has the system sporting an exceptionally strong and cutting edge processor. The story comes from Xbox World as sources holding brand new dev kits say that the future hardware from Microsoft will come with 16-Core IBM Power PC CPUs.

The rumor also attributes the AMD-7000 line of GPUs to the graphics arm of the potentially upcoming machine. However, a few months back, we reported on a rumor that connected the next Xbox to the AMD-6000 line of GPUs. We're not at all surprised that these spec points are now conflicting. So it goes with news like this.

Xbox World indicates that its sources expect the new Xbox to launch from Microsoft by the close of 2013.

A 16-Core CPU seems a touch strong for the console level of gaming. Consoles typically make use of slightly dated hardware in builds. Companies do that to keep building costs down low enough to generate attractive price points for consumers. 16-Core processors became actual tech last November with AMD's Opteron 6200 server processor.

Both Microsoft and Sony have said that they will not be bringing new console hardware to this year's E3, but that doesn't stop CVG or Xbox World from pointing towards June's convention for more information. We're going with the companies and assuming that we won't hear anything about the next-gen systems from either during E3.

As more comes for the new consoles, we'll have it. For now, let this rumor serve as a jumping point for conversation. Do you buy the potential for 16-Core CPUs in the new Xbox hardware?

[via CVG]