Kotaku are claiming that multiple “credible” sources have told them that Microsoft are planning to launch two new console in the next year. The first will be a smaller, cheaper version of the Xbox One, which will release later this year. The second is a “more powerful” Xbox console, which will be released in 2017.

According to Kotaku’s sources this new Xbox will feature a “more powerful GPU”, will support 4K content and be capable of supporting the Oculus Rift VR headset, with Microsoft reportedly pursuing a relationship with Oculus. The new Xbox is currently in development under the codename Scorpio.

The slim Xbox One model, meanwhile, could potentially ship with a 2TB hard drive. It’s expected that Microsoft will announce the Xbox One Slim at its E3 press conference in just over two weeks time.

According to one source at Kotaku, these two consoles form part of a wider Microsoft strategy codenamed “Project Helix” – which aims to converge Xbox and Windows. This isn’t so much of a surprise if true, as Microsoft have been announcing that some of their big exclusives are coming to PC, like Halo Wars 2, Sea of Thieves and the recently released Quantum Break.

This source also went on to say that Microsoft are planning to move towards an iterative approach for their consoles, shortening the console cycle considerably, with more frequent hardware releases and games that are forwards and backwards compatible across Windows 10 and different models of Xbox.