Rumour has it that MS is going the Apple route and is just going to call it "the new Xbox"

A lot of the rumors with the next Xbox name have taken up Xbox 8 as its name. Reason being that it has been 8 years since the 360 (released late '05), has 8gb of RAM, has 8 cores in its CPU, is an 8th gen console, and will include Windows 8 (in some form). Then with the other information of Xbox Infinity being the "rumored" rebranding of Xbox Live (as well as as the Xbox8 domain purchases, and the Xbox ∞ images showing) it works well in marketing. People also tend to choose a product with a higher number in its name than a competitor (even if it is worse than the competition), because of the number being higher so "it must be better." People are also saying that the next Xbox could be called Xbox Infinity, but that doesn't make sense since you can't go past infinity. Infinity works well for Xbox Live, because of the "infinite possibilities of what you can do" (a marketing team could probably come up something interesting similar to that line, especially with its integration into every Microsoft product). Microsoft has been ending the LIVE brand, so it fit them planning on renaming XBL (Hotmail.com being replaced by Outlook.com, not being able to create @live.come e-mails, Live Messenger being replaced by Skype), so there are many things leading to the possibility of Xbox 8. Those are just my 2 cents though.

It may be a stupid name, but you can't really go anywhere after a console with the number 360. Xbox 361?

People call it that because you do a '720 and walk away. PS4>Xbox