Austin, Texas-based Flextronics is apparently working on a new Microsoft project, and all signs point to it being the next generation version of the Xbox. According to media reports, the company has assigned an entire new testing team for the assignment, and these employees are working behind-closed-doors from the rest of the company. It doesn't take a genius to try to put those pieces together.
And if there needed to be any other reason to believe this might be related to the Xbox 720, Flextronics was also a key part in the manufacturing process of the original Xbox and the Xbox 360. It makes complete sense that it would be involved, at least on some level, with the next Microsoft gaming console. But just because this news is coming a month ahead of E3, gamers shouldn't get too excited.
Microsoft has promised that there will be no Xbox 720 news at next month's humongous trade show. In addition, whatever work is being done at Flextronics, it is going to be in the extremely early phases. If it is in fact working on the next Xbox, it most likely is only helping develop prototype models at this point, for Microsoft's preferred developers. And if those units are just now being ushered out of the door, we have quite a wait before any sort of retail model will be in the works.