While a number of sources are claiming that the next Xbox (or the Xbox 720 if you will) has new controllers that will feature color touch screens as well as directional sound and a finger tracking Kinect-like technology. While it all makes for good copy, sources tell us that this is only something that Microsoft is experimenting with, and at least right now it does not know if it will be something to be implemented into the final product design.

Our sources also tell us that Microsoft has three major concerns about it at the moment: it is big, it is pretty heavy, and it will be expensive to produce. This is not to mention the fact that the level of usefulness also has been questioned. This isn’t to say the touchscreen would not be useful, but the real question is whether the usefulness of the device is in the right direction.

Despite the talk of the controller including a touchscreen, Microsoft has apparently been looking at tablets as one possible way that they could get a touchscreen-type input device. According to sources, the tablet device could be an optional offering where Microsoft might just offer compatibility with the tablet device being optional. This may be the option that Microsoft will use to keep the cost down.

Sources continue to tell us that while the hardware has been confirmed, there are still many things that remain for the company to sort out. Microsoft is rumored to be talking with a number of developers to receive additional input before making its final decisions.