While no official announcement has been made, rumors have been circulating for a while now that Microsoft plans on updating its Xbox console in 2012. Nintendo should be in Vegas showing off the Wii U to CES attendees, and Sony has its Vita handheld system to talk about — but with neither expected to announce big new projects, this leaves the door open for Microsoft to steal the gaming spotlight with the so-called Xbox 720 (which will probably be renamed later this year). 2012 is also Microsoft's last year at CES, so they'll want to make a big impact as they head for the door.
The Xbox 720 (which I, Michael Zoran, believe will be called either Xbox Infinity or Xbox 365) is rumored to have an AMD processor, Blu-ray disc drive, Windows 8 compatibility, and deeper Kinect integration than the Xbox 360.
You can read the initial story when I broke the news about Xbox Infinity to the gaming world, here. The newest information about the 2012 CES confirms everything I said would happen, although I predicted the information about the Xbox Infinity would be revealed behind closed doors. Time will tell what happens, but either way it will be exciting!
Note: I'd like to thank Yahoo for providing this information about CES rumors.