The first console is said to be a more compact version of the current Xbox One, due out in 2016.
Microsoft is preparing at least two new Xbox models for release in the next two years, according to Kotaku sources.
Smaller Xbox One set for E3 announcement, sources say.
It will include a larger, two terabyte hard-drive and is expected to be announced during Microsoft’s E3 2016 press conference on June 13.
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