Could the next Xbox be called "Xbox 8"? Sure, the name might incite some confusion. For example, some might think the system to be 352 generations less powerful than the current iteration. Others will point out that that the next system is far from the eighth generation of the Xbox.
Microsoft's interest in the Xbox 8 name was discovered by Fusible. The site uncovered a Microsoft-initiated dispute for a number of Xbox 8-related domains, such as Xbox8.us and Xbox8.org. There are also disputes filed for XboxPhone.com, XboxTablet.com, and XboxLiveTV.com.
These moves could be protective measures, and not representative of any actual products coming out of Redmond. However, "Xbox 8" certainly has a much better ring to it than "Xbox 720"--even if both the names are total lies.
Microsoft issued a statement to Kotaku in response to the report: "Microsoft often acquires various domain names as part of its ongoing business strategy, but beyond that we have no comment."