The latest rumors surrounding the Xbox 720 suggest the console may require Internet connectivity to run.

Sources close to the development of Microsoft's next-generation game system said it will function completely through the Internet connected to the new Xbox Live, The Edge reported.

The Xbox 720 will also allegedly block the use of used games. Customers can either download a game straight to the console or buy discs that will have the necessary one-time use activation code. Once the code is initially used by the initial gamer, the disc will reportedly no longer work if it becomes a used game for another player.

The decision by Microsoft to wipe out the used game market and force internet connectivity may push some customers away from the Xbox 720 and toward Sony's new PlayStation 4. Both devices will reportedly debut around the same time, putting them in immediate competition for the attention of gamers looking to play on the next-generation consoles.

Microsoft and Sony may unveil the consoles at an "Apple-style press conference" at the Game Developers Conference that will take place March 25-29, according to a report by VideoGamer.com.

Other reports suggest, however, that Microsoft may choose to debut the Xbox 720 at the E3 tech and gaming expo in Los Angeles on June 11.

While Microsoft has kept quiet as far as the specifications of the console, VGLeaks released leaked specs for the Xbox 720 and listed it under the code name Durango.

The rumored specs for the console include an 8 core CPU running at 1.6GHz, 8GB of RAM, 50GB Blu-ray disc drive and feature Gigabit Ethernet. The Xbox 720 is also expected to come with an 800 MHz graphics card that upgrades the system from the 500 MHZ card that is in the Xbox 360.

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Xbox, Xbox 720, Xbox 720 release date, Xbox 720 specs, E3, Microsoft, Sony, Ps4, Playstation 4, Game developers conference