On the latest WhatTheTech podcast, Paul Thurrott weighed in on the NeXtbox rumors shared some info from his sources.
Apparently Microsoft is launching a 99$ Xbox 360 codenamed "Stingray" this November alongside of the Next Xbox.
According to Paul this is because the next Xbox isn't going to offer backwards compatibility for 360 games.
He mentions that it's going to be expensive. Apparently around 500$ for a normal unit, or 300$ for a subscription model.
It was also relayed to him that the device does indeed require a constant internet connection to function, although that is better discussed in this dedicated thread.
He also mentions that nothing that he has read about the next Xbox sounded negative to him.