Microsoft is apparently preparing to take it up a notch against rival consoles with the debut of a cheaper, smaller Xbox One later this year and the release of a more powerful version of the console in 2017.
The smaller, more compact console is rumored to be set for launch by the end of 2016, with one source saying that it will come with a larger 2TB hard drive, which has twice the capacity of that of the current version.
Three sources, who asked to remain anonymous, also told Kotaku that the 2017 Xbox, codenamed Scorpio, will come with a stronger GPU and support for the Oculus Rift reality headset.
Microsoft is using these two new consoles as part of its "Project Helix" strategy, which is aimed at merging together Xbox and Windows, its two most valuable brands, according to one source. Other moves that the tech giant has made to further this strategy along include the announcement of new exclusives like "Halo 2" and "Sea of Thieves" for both Xbox and PC, and developer sources have said that the company plans on releasing the "Halo" series and future games on both platforms.
The smaller Xbox One isn't the only product that Microsoft is rumored to debut this year, with the others being two new streaming devices at this year's E3 event. The first of these devices will cost $100 and be around the same size as Google's Chromecast. It will also give users access to digital content on the Xbox, such as games so that people can play them on a second TV.
The second streaming gadget will cost somewhere between $150 and $175 and be a standalone offering. This device, which will be larger than the first, will also provide access to universal apps and games from the Windows store. While users will need to stream from an Xbox One console to gain access to full-blown Xbox One games, they won't need to do so for casual games that Window 10 users can play.
Xbox fans will only have to wait for a few more weeks to see if these rumors are true. E3 will begin on June 13 at 9:30 a.m. PT (12:30 p.m. ET).
