As the onslaught of news from E3 2011 just begins to settle down, rumors surrounding next year’s show emerge. Citing a “high-placed” source within Crytek, VideoGamer reports that Microsoft is poised to announce its next-generation hardware at E3 2012.

While specifications for the new box have yet to be locked down, Crytek is already on board with development. The DirectX11 API is targeted, suggesting a recent graphics chipset from Nvidia or ATI. Reportedly, TimeSplitters 4 will be among the showcase titles. Backed by its robust CryEngine 3 middleware, Crytek hopes to position the title as a visual benchmark for the next-generation.

For its part, Microsoft has declined to comment — and we wouldn’t expect a peep from them regarding this anyway, given that Xbox 360 is headlining the NPD sales charts.

Follow this author on Twitter.