The next generation Xbox, codenamed Durango, will not play second games and will always have to be connected to the internet in order to function.

Xbox Durango will not run second hand, is always online

In an interview with NowGamer, David Connolly, managing director of Xing Interactive, said he had spoken with "sources" working on the console who had told him that the console would be locked down, and Microsoft will be essential to all functions.

"We hear different things from the two big players. Sony are actively asking for more retailers "past, present and new" to help them support their next PS launch" Connolly said.

"I have spoken to sources close to Microsoft on the other hand who insist that the next Xbox will not be compatible with second hand, will require permanently-on connection, and 'you'll have to go through Microsoft to do anything'.

"There could be a big issue on consoles with one of the big players going their own way. An independent retailer put it this way: 'Microsoft will still make a profit out of Xbox. As for the rest of us, tough titty'."

Rumours around the next Xbox, also known as Xbox 720, have been circulating for months, particularly following the reveal of the PlayStation 4. Most recently, details of two launch titles for the console, Ryse and a new Forza game were leaked and a Microsoft employee's LinkedIn page confirmed that the console was in development.

Microsoft itself, however, is yet to give any official word on the Durango whatsoever. Though the console was originally set for unveiling at E3 2013 between 11 and 13 June, veteran Microsoft blogger Paul Thurrott claims that the Durango will be shown off for the first time at a press event on 21 May.