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The codename of the Xbox 720 has been revealed as 'Loop', by people who are in the loop about these kinds of things.



From Techradar:
Noted Microsoft nerd MS Nerd outed the name, claiming that the long-awaited console will be far smaller, cheaper and quite Kinect-focused when it finally lands on our shelves. So far, so Wii. The Xbox Loop's innards will apparently feature a modified Win9 core, with a custom-designed ARM-based processor that has dedicated assistant cores to deal with graphics, AI, physics, sound, networking, encryption and sensors.
  Xbox 720 codenamed 'Loop'?