It seems that Microsoft has already begun manufacturing the next generation of its Xbox console, in the form of the so-called Xbox 720 (aka Durango), at least according to a brand-new report that has surfaced on the web. While Microsoft hasn't even acknowledged that it's working on a successor to the current Xbox 360, rumors about the next-generation Xbox 720 are floating all around the web. We've already heard a list of supposed features, as well as the codename under which the prototype is known, Durango. Now, IGN has revealed that Microsoft has already begun manufacturing the next Xbox in partnership with Flextronics, the same company that was also helped produce the first Xbox and the current Xbox 360. According to the report, the Flextronics plant in Austin, Texas, already has a special team that's working on the new Xbox in order to test out its hardware and software. However, this new report doesn't exactly mean that the Xbox 720 will be ready for a reveal at E3 2012 next month or for an actual market launch at the end of the year. Instead, it's likely that Microsoft has tasked Flextronics with creating a large number of development kits that will be sent to game studios from all around the world in order to allow them to create videogames for the new Xbox. Microsoft released a statement about the matter, but declined to comment about any successor to the Xbox 360. "Xbox 360 has found new ways to extend its lifecycle like introducing the world to controller-free experiences with Kinect and re-inventing the console with a new dashboard and new entertainment content partnerships. We are always thinking about what is next for our platform and how to continue to defy the lifecycle convention. Beyond that we do not comment on rumors or speculation," the company said. Other reports claim that Microsoft will only focus on entertainment features for the Xbox 360 at this year's E3, so it's unlikely that the next-generation console will be presented this year.