Microsoft has confirmed that a next-generation Xbox is in development, revealing that the decision to revamp its Hotmail/Outlook service last week was so that it could release it "in time for the new wave of products" due to launch soon, including "the new Xbox".

"We've had Hotmail and operated Hotmail for about sixteen years," said Brian Hall, general manager for Windows, speaking to The Verge.

"We obviously have Exchange and Outlook that people use at work.

"We just decided it was time to do something new and to bring the best from each of those and put them together and release it right in time for the new wave of products that we could have coming out with Windows 8, with the new version of Office, with the new Windows phone, and the new Xbox."

Microsoft has yet to announce its plans for its next-generation Xbox, despite it being known that numerous studios are developing for next-generation hardware.

Earlier this year, a document alleging to outline Microsoft's plans for its next-generation Xbox leaked onto the internet. The document included plans to launch revised Kinect hardware and a new VR technology.

The document also suggested that the next Xbox would eventually transition into a cloud-only platform, where future titles would be streamed directly to the consumer via the cloud.

Windows 8 launches this October.