I don't believe any of this. Between the name, design and list of games - it's like a trio if epic failures each bigger failures than the previous. I'm expecting to see a different hardware altogether, or nothing at all, from Microsoft tomorrow.
If anyone has watched the documentary on the 360 design, they were strict about having curvatures and rejected several concepts that were similar to this. It doesn't make any sense for them to go back to something similar like those 5 years later when the community has a higher expectation. No way.
If this thing does turn out to be true then the mentality at Xbox HQ has completely shifted to something else. They've already made a fatal mistake with the hardware's reliability, they wouldn't kill the thing before it even released.