Will Microsoft outgun Sony with its generation 1.5 console?

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Sources familiar with the matter told Kotaku that Scorpion might be able to fully support the Oculus Rift, and that Oculus and Microsoft are trying to form a partnership.

The Xbox One rumours are the most nebulous of the bunch, but Polygon has recently put out a report saying that there will be two new variants of the Xbox One. This will be the year when Microsoft will launch and release a new Xbox console, reportedly codenamed as of now as "Scorpio".

Microsoft has been hard at work preparing two new Xbox models for release sometime in the next two years, according to Kotaku.

Polygon's sources also said that Scorpio might be announced as early as next month, but it will likely be released in late 2017. If Sony are aiming to enhance its hardware, while Xbox advances it, then there could be some big change next year.

Additionally, according to current plans of Microsoft, the smallest version of Xbox One is scheduled to be released in August 2016, although pricing for the system has not been finalized.

We could be seeing more frequent incremental hardware updates to the console rather than the five-year revisions of the past. Microsoft had already been stressing on this for some time now as per Microsoft's grand plan to project Windows 10 as the single platform that developers need to create more games and apps for. The new slimmed down Xbox will be around 40% smaller than the current Xbox One also feature 2TB of memory, making it a decent option for those yet to upgrade from their Xbox 360s.

Microsoft's E3 press conference begins at 5:30pm BST on Monday, June 13. We'll see where Sony stands with the rumored PlayStation 4 Neo.

At the current time Microsoft has not confirmed anything, but with E3 just around the corner the company may reveal more details in the coming weeks.

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