Neowin®

On stage at E3, Microsoft has just unveiled its new, updated Xbox, dubbed the Xbox One S. The new console is significantly smaller than the One, support 4K video and comes with an updated controller.

Microsoft has cut $50 off the price of its console - but while the discount is only available "for a limited time", the timing lends credence to rumors that a new Xbox One will be announced in June.

Rumors had mentioned Microsoft would be unveiling a slimmed down Xbox One version at this year's E3, but the convention's website now seemingly points to the company's VR plans being unveiled as well.

A 40%-smaller Xbox One, with a 2TB hard drive and 4K video support, is expected at E3 next month. But another model - up to 4 times more powerful, and with VR support - is said to be coming in 2017.

Microsoft is reportedly 'considering plans for a lightweight Xbox One', which may be designed only to run games and apps from the Windows Store, in an effort to compete with the Apple TV box.