As we get closer to the official unveiling of the next Xbox, more talk circulates about the console. A new round of chatter says that an online connection will be required.

Edge says that sources with good knowledge of the upcoming system say that it will require an online connection, but that physical discs for it will still be sold at retail. If this rumor is true, it would certainly jibe with what we've heard developers talk about when characterizing the next-generation of systems: a gaming environment that is "always on."

The article also mentions the system's prohibition of used games, use of Blu-ray discs, and an upgraded Kinect – stuff we've heard before.

If this always-on rumor is true, while annoying and even a barrier to entry for some consumers, it would seem to fit into Microsoft's stated ambition to make its next system streaming/downloadable media focused.