The Xbox 720 and next-generation consoles seem to be a bit of a mystery in some respects, but not to 343 Industries as they seem to be working on next-generation development for Halo 5.

According to a report from the Seattle Times on Wednesday, Halo 4 franchise development director Frank O'Connor was asked about the development of Halo 5, and he acknowledged they have begun some technological and story-telling work on the game.

"We've done as much prototyping and storytelling and the future arc of the universe as we have on technology.

"So we're definitely working on the future but in some ways it's technologically agnostic at this point.

"We definitely have a lot of smart people inside the studio and outside the studio thinking about future technology and future development for sure," O'Connor said.

It is very interesting that O'Connor even answered this question as many, many developers have dodged this question over and over again, but this could be a sign of things starting to materialize for next-generation consoles.

Are you surprised Frank O'Connor admitted some development has begun on Halo 5 for a next-generation system?