We've heard bits and pieces about Microsoft's new Xbox 720 console, which is expected to be officially unveiled next month.  Today a new batch of rumors came rolling in, ones that could mean limitations for the system if true.

According to a report from VGLeaks, the system will have an "Always On, Always Connected" design, one that lets users "quickly and easily enjoy their connected entertainment experiences, with no waiting for the console to restart or install updates."  The idea, it seems, is that the Xbox should be "ready instantly when users want to play."

The system will come with an unspecified size hard drive that can hold "a large number of games.  All games will have to be installed; however, the documentation does state that you will be able to play games while they are installing rather than having to wait until the installation is complete.  Once installed, gameplay will not use content from the optical disc."

Finally, the report indicates that the Kinect 2, which is being included with it, will be required to get the most experience out of it.  You can probably still use a controller to access certain items, but the Kinect will be much more involved.

Microsoft hasn't commented on any of these rumors, but we're curious to see what happens with the system announcement next month.  Be sure to check back for official details…