Citing a source breaking a 'strict NDA', MCV suggests that it has been told the Xbox 720 will offer up "interchangeable solid-state storage" which would mean either something like SD cards or a proprietary system.
MIcrosoft has issued a statement to MCV stating: "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."
Obviously no flat denial or confirmation was ever likely for a device that has not even been announced as yet, but the prospect of a disc-less Xbox 720 certainly seems likely.
Given the increased focus on connectivity in the Xbox 360, and Microsoft's steady move into software and services, it is clear that it feels physical media is not the future.
While physical game retailers struggling against the tide the digital business is booming in video games, and even though a complete move away is probably premature, it's clear that console manufacturers are looking to our broadband connection rather than shelf full of plastic boxes.
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Patrick Goss is the ex-Editor in Chief of TechRadar. Patrick was a passionate and experienced journalist, and he has been lucky enough to work on some of the finest online properties on the planet, building audiences everywhere and establishing himself at the forefront of digital content. After a long stint as the boss at TechRadar, Patrick has now moved on to a role with Apple, where he is the Managing Editor for the App Store in the UK.