Many other analysts have speculated that the console will do away with physical game media and move to a digital-only platform.
Says Creutz's research note (CVG): "Although not yet confirmed by Microsoft, we believe the next generation Xbox console could launch in the fall of 2013. We believe a digital-only next-gen Xbox is unlikely given risks to both Microsoft's market share and the gaming ecosystem as a whole from any attempt to kill used games.
"However, we do believe that Microsoft may be targeting a cheaper physical solution in an effort to get the initial price of the box down and speed up new console adoption, which would be bullish for software publishers."
Microsoft recently noted that there will be no talk of the upcoming Xbox at this year's E3 or "anytime soon."