Microsoft may be gearing up to launch a new Xbox One gaming console in 2016, with a download-only device that would be noticeably smaller than the current Xbox One and enter the market as a potential rival to the new Apple TV. According to a report from Petri IT Knowledgebase (via Business Insider), the console would also see a price cut to match the current market of streaming-centric devices.

Keeping with the Xbox brand, the slimmer Xbox One would be able to download games from the Windows Store, but the power restraints of a smaller box would likely prevent access to the full Xbox games store. This casual-leaning app marketplace is another category in which the Xbox would compete directly with the new Apple TV, which introduced a similar App Store for the first time on Apple’s living room device when it launched in October. The report gave no mention as to whether the Siri-like Kinect would be integrated as well.

Microsoft is said to be looking at a late 2016 launch for the new Xbox One, which would be sold in concert with current models akin to the slimmed down Xbox 360 S that launched five years after the original 360. The company has introduced design refreshes and low-tier prices on its gaming consoles in the past: as low as $199 for the 256MB Xbox 360 Arcade and 4GB Xbox 360 E. Although the Xbox One has seen multiple price cuts, it’s yet to have a major hardware overhaul.

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Source: MAC ROUMORS