According to IGN, the Xbox 720's raw graphical processing power will be "six times that of the Xbox 360 and will yield 20% greater performance than Nintendo's forthcoming console, the Wii U".
The system is expected to be released in October or November 2013, while developers are likely to receive final development kits sometime in August.
The Xbox 720 will be powered by an AMD 6000 series GPU, akin to the Radeon HD 6670, enabling DirectX11 support, multi-display output, 3D and 1080p HD.
Previous reports have suggested that Microsoft's next console will launch in two different editions.
One of the rumoured editions, codenamed 'Loop', will be "far cheaper" and more focused on the Kinect system.
The new Xbox is expected to be announced at E3 in June.