A new rumor claims Microsoft is working on a smaller, digital-only Xbox One model that would release in late 2016 and cost less than the current Xbox One price of $350.

While we already know Microsoft is gearing up for a big year for Xbox games in 2016, it looks like the tech company may also be planning to release a new, smaller Xbox One model. According to Microsoft blogger, Brad Sams, Microsoft is looking at releasing a new “lightweight Xbox One” toward the end of next year.

Sams claims the information comes from internal sources at Microsoft, though he didn’t provide any details about who the sources might be. Apparently, the new Xbox One model would only allow for digital downloads and would face off with other devices outside gaming consoles. According to Sams:

“I have heard from internal sources that the company is considering plans for a lightweight Xbox One that may only be for Windows store games and would compete with the Apple TV. But it’s not clear if these plans have been scrapped.”

The idea of a smaller, digital games-only Xbox One isn’t too wild an idea, considering rumors circled about such a device when the original Xbox One released in 2013. At the time, those plans were reportedly put on hold, so it’s possible Microsoft is looking to revive the idea.

Xbox One Kinect Gestures

When Microsoft first announced the Xbox One, the company revealed they were looking to provide a digital-only console. Quick backlash from gamers caused Microsoft to change course, releasing the Xbox One as we now know it, with a disc drive in place. However, as digital downloads have become more popular among gamers, the idea of a digital-only Xbox One console is no longer a cursed idea.

In fact, Sams seems to think the new console would come at a “much lower” price than the current Xbox One price of $350. If that’s the case, there may be many gamers interested in picking up the new device, despite having to purchase games via digital download.

It’s also interesting that, according to Sams, Microsoft is looking to take on Apple TV and other home entertainment devices. From the beginning, Microsoft has touted the Xbox One as the ultimate home entertainment device, marketing it as far more than just a gaming console. If it turns out Microsoft is looking to challenge Apple TV, we may see a new type of controller launch with the device, making it easier for non-gaming owners to use.

This, of course, is all speculation, as Microsoft has not yet confirmed the existence of the new Xbox One model. But if Sams is correct in his predictions, chances are gamers can expect Microsoft to officially announce the device in the coming months.

What do you think about this rumor? Do you believe Microsoft is working on a smaller Xbox One model? Let us know your thoughts in the comments below.

Source: Petri