http://www.gameinformer.com/b/news/archive/2016/05/25/rumor-xbox-one-slim-in-2016-more-powerful-console-in-2017.aspx

As E3 approaches, rumors of significant hardware changes continue to spring up. Xbox boss Phil Spencer previously told us he doesn’t want half-step iteration, but a report this morning suggests the opposite.

Kotaku reports that multiple sources have told the outlet that a more powerful Xbox One is due in 2017. The console is codenamed “Scorpio” and allegedly features a more powerful GPU with Oculus Rift support possibly in the offing.

This will allegedly be preceded by a move taken by both Microsoft and Sony in previous generations. Kotaku suggests that a smaller profile “slim” Xbox One will be revealed at E3 in June.

This news follows multiple rumors of Sony’s own more powerful PlayStation 4 allegedly in development. That device has been informally labeled “PlayStation 4.5” and “PlayStation 4K,” however it is reportedly being developed under the codename “Neo.”

We’ve weighed in on the possibility of 4K console gaming in the past. This week, Matt Kato shared why he thinks this is the wrong time for updated hardware feature sets.

We've reached out to Microsoft for comment. We'll update should we receive a response.

Update: Microsoft has responded to our inquiry. "We do not comment on rumors or speculation,” a representative told us via email. With E3 just a few weeks away, we won't have long to wait to find out if at least part of this is accurate.

It sucks if those consoles can play games that regular PS4 and Xbox One consoles can't