According to British gaming news outlet Edge, the next generation Xbox from Microsoft (codenamed "Durango") will be "always on, always connected."
According to a document that was circulated to developers who will be working on titles for the Durango, the console will enter a sort of low power use standby mode when not in use rather than turning completely off as the current Xbox 360 video game console does.
"The console will be ready instantly when users want to play, and will always maintain a network connection so that console software and games are always current," reads the document according to the Edge Online website. "With this "Always On, Always Connected" design, users will quickly and easily enjoy their connected entertainment experiences, with no waiting for the console to restart or install games."
The British gaming news outlet also reports that Durango will be bundled with an improved Kinect setup and comes equipped with a blu-ray optical drive (a feature the Xbox 360 lacked). It's currently rumored that games will not be playable off-disk, however, and will require installation onto the console.
News10/KXTV