Microsoft unveiling new Xbox console at E3?

The rumors about Nintendo unveiling their new console at E3 this year have been confirmed. Today, rumors are circulating that Microsoft's Xbox successor. The report comes from Develop Magazine, which claims that third-party developers, specifically EA, have already received the console. A statement from a"senior, trusted, well-placed source" says that developers have had the hardware for a month. The rumored console is still at the early stages of development and does not even have a design. The console is reportedly being stored in a PC case. There is very little known at this time about the specs of the console, but it will definitely have increased integration of Kinect. 

Nothing is confirmed at this time, but the source believes it would be launched by the end of 2012 after being announced in some form at this year's E3. The source goes on to say, "Why let Nintendo steal the thunder in June [At E3]? It doesn’t want to lose momentum. That’s why I think Microsoft is rushing to make an announcement at E3. ... Kinect will keep the 360 going for a couple of years, but Microsoft knows that if it slows down now it will face trouble."

Another report from Eurogamer source claims that an E3 announcement from Microsoft is "highly unlikely." No confirmation has been made available from EA or Microsoft at this point. What are your thoughts on this news?