It might still eventually be called the Xbox 720, but it looks like we might have to start referring to the next Microsoft console by another name atleaset for now, according to Kotaku, the console's codename "Durango."
Among the most interesting that the console will do, is the "notion that the Xbox 720, or Durango, will use a revolutionary new touchscreen controller that has been described essentially as a tablet embedded into a normal game controller."
That would seem to mimic Nintendo's strategy with the Wii U, where the controller has gotten more attention than the console hardware itself. The Wii U controller will be able to play games autonomously even without the TV on, while the Durango's controller would likely be more of a secondary component to the Xbox hardware.
Also expected is that the Durango will have strong voice and motion controls like the Xbox 360 Kinect, and it will have a much stronger approach to 3D content. Some also predict it will allow players to play online games for free, and employ a premium service similar to Sony's Playstation Plus.