Smaller Xbox One Coming This Year, More Powerful Xbox One In 2017, Says Report (kotaku.com)

Keza MacDonald and Jason Schreier, reporting for game blog Kotaku: Microsoft is preparing at least two new Xbox models for release in the next two years, sources tell Kotaku. Later this year we'll see a cheaper, smaller Xbox One, and next year Microsoft will release a more powerful version of their premiere console. The 2017 Xbox, which is codenamed Scorpio, will have a more powerful GPU. We hear that it will also be technically capable of supporting the Oculus Rift and that Microsoft is pursuing a partnership with Oculus. As for 2016, sources have told us there's at least a more compact version coming by year's end. One source believed it will include a larger 2TB hard drive, double the capacity of the most spacious current model. We're expecting Microsoft to announce the more compact machine at E3 next month.