• Microsoft will reportedly launch a smaller version of Xbox One this year, and a more powerful version next year that includes 4K resolution and Oculus Rift support.

Microsoft will reportedly launch a smaller version of Xbox One this year, and a more powerful version next year that includes 4K resolution and Oculus Rift support. (Photo : Twitter/Xbox One )

While the internet has been buzzing for months about the looming Sony PlayStation 4 Neo, little information has surfaced on what Microsoft might do with its Xbox One to remain in competition. Now, reports have emerged that Microsoft is prepping a new system that supports Oculus Rifts, and that it will come out in 2017.

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Fans will see a 2TB system arriving later this year in a smaller and thinner format, according to Kotaku. However, a faster and more powerful Xbox One will not hit the shelves until 2017.

Just like Sony, Microsoft is said to be shifting to an Apple-like model in which games will be supported across several devices. The shift allows both tech giants to restrict support to a static range of products before moving that support along the way. Since the two companies are yet to reveal any details on how the support model will work, drawing inferences on the function remains limited.

A key point that Microsoft is seemingly pushing ahead is the notion that all games should have simultaneous release across the PC and Xbox markets and be cross-compatible, including "Halo," according to Extreme Tech. It was a popular idea when Microsoft first made an announcement, but the popularity has taken significant hits lately.

According to the publication, most Windows Store titles have been ugly wrecks. "Rise of the Tomb Raider" ran considerably well, although Windows Store titles do not support modding, multi-GPU configuration, and have limited support for features such as disabling V-sync.

As opposed to games created on Steam, Windows Store titles are locked to a single operating system. This is possible with Microsoft's Windows 10 as the only OS the company will ever release again, and extraordinarily poorly with any person who cares about multi-OS support. Some missing features have been incorporated in updates, some are under consideration for incorporation in the Anniversary Update, and others like modding support have no ETA.

The platform might work with Oculus Rift to bring full support for the VR platform to the upcoming Xbox One. Its GPU will be technically capable of 4K. Although 14nm graphics and Polaris ought to deliver a considerable enhancement over the current visuals, no $100 SoC will be 4K-capable at significant frame rates.

Here is footage for details on the upcoming Xbox One.