Durango Lives!

Microsoft's Brian Hall (the general manager of Windows Live) mentioned "the new Xbox" in an interveiw, suggesting it could be integrated with Windows Live.

"We've had Hotmail and operated Hotmail for about 16 years. We obviously have Exchange, and Outlook, that people use at work.

We just decided it was time to do something new and bring the best from each of those and put them together and release it right in time for the new wave of products that we could have coming out with Windows 8, with the new version of Office, with the new Windows Phone and the new Xbox."

That's probably the most senior Microsoft employee to mention the new Xbox yet!