Despite word from Microsoft itself that we will not see the Xbox 360’s successor at this year’s E3, rumors continue to swirl about what the company is planning.  To add fuel to the already burning fire, Boy Genius Report is citing “insider with a good track record” “MS Nerd” with news of what we may see from Microsoft in the coming months.

According to MS Nerd, a new Xbox 360 console will launch late in 2013 that “does Arcade-style games & all the current & future media apps with Kinect (with near-mode).”  He or she also claims it will be sold for around Apple TV’s $99 asking price.

The description is a bit vague, as MS Nerd could be intimating that the system would focus on Xbox Live Arcade games only or that it would act as the new Xbox 360 Arcade model.  Kinect connectivity seems a certainty, however, though from the statement, its use may not extend far beyond non-gaming apps like Netflix.

Whatever the case may be if this rumored console is a reailty, MS Nerd also claims the true Xbox 360 follow-up will be announced after this console’s release.  Unfortunately, details are “hazy,” but MS Nerd gives a very PR-like description of what the next generation Xbox will do on Reddit.

With so many rumors abound about Microsoft’s future plans, it is important to take yet another with a healthy does of skepticism.  If you would like to check out the validity of MS Nerd’s previous statements, the user does maintain a Tumblr and Twitter account.  Yet, regardless of whether this Xbox “slim” is real or not, the more important question Microsoft may want to ask is if this is actually a necessary step to take in the console life cycle.