Our source, who has worked on several projects involving the Xbox and the Xbox 360, has seen the proposed packaging and other design elements for the new console, and says that as of right now the console is being branded as the “Xbox 360.”More info at Engadget
Microsoft next-gen console to be called Xbox 360

Engadget received information from a trusted source at Microsoft that the company has pretty much settled on a name for the next Xbox. The next-gen console will not be called Xbox 2 but will probably be called Xbox 360.