The latest rumors making rounds on the Internet indicate that the upcoming Microsoft console i.e. the XBOX 720 is going to come equipped with a 16-core IBM PowerPC chip that was reportedly found in some early development machines.

The finished version of the XBOX 720 is reported to come with a 16-core CPU, along with a GPU that will be equivalent in power to AMD Radeon HD 7000 GPU. At first instance, a 16-core CPU seems unlikely, but AMD did introduce a cutting edge 16-core Opteron chip in November last year. The chip was developed to be used in servers for applications that require a large number of threads, such as video encoding, and cloud computing. As for the PlayStation Orbis and XBOX 720, Sony and Microsoft deny that they will be exhibiting the consoles during this year’s E3. But, reports indicate that both the companies are racing toward that goal.

In its February edition, the XBOX World magazine published some bold claims about Microsoft’s upcoming game console. The magazine cited sources saying that the XBOX 720 will support a souped-up controller that touts an HD touch screen in addition to traditional analog sticks and buttons. The design will be similar to the Nintendo Wii U’s own tablet controller, though the Microsoft version is believed to be closer in size to Sony PlayStation Vita.