Edge Magazine, citing an anonymous source, is reporting that "Xbox 720" development kits will be in the hands of developers by the end of the year. They claim that .developers like Ubisoft Montreal are already using 'target boxes' based on Microsoft's intended and expected specifications for its new console machine. Those that already have them will get new ones by the year's end. The dev kits have been sent to publishers such as EA and Ubisoft, and are PCs featuring components that are as close to the machine's new specs. Edge also claims that "AMD is providing the bespoke GPU solution for Microsoft's console."
Naturally the rumor is fueling other rumors, like the possibility that the new console system from Microsoft will land at retail close to the 2012 holiday shopping season. If that's the case then it also means the public would get a glimpse of the new system prior to launch, during industry events like GDC or the Electronic Entertainment Expo.
Of course, Microsoft is not publicly commenting on any of this speculation.
Source: Edge Magazine