With a streamlined and cheaper Xbox One revision to launch later this year. Or so the rumours would have you believe. According to sources in a report over at Kotaku, 2017 will see the release of a more powerful Xbox One -- codenamed Scorpio. One that might be powerful enough to support the Oculus Rift.

The news follow recent reports of a more powerful PlayStation 4 due for release later this year. Like with that revision the more powerful Xbox One will be backwards compatible, and with recent word from Microsoft may even be forward compatible with new hardware revisions released every few years. Kind of like with phones, or PCs. In terms of Oculus Rift support it's being reported that Microsoft are actively pursuing a partnership with the company, something that makes a lot of sense with the inclusion of an Xbox One controller with each headset sold.

The cheaper, smaller Xbox One, is expected to be announced at E3 next month and is reported to feature a much larger hard-drive (2TB) than the current model. In addition to not being the size of an early '90s VCR. Be sure to read the full report over at Kotaku.