Microsoft will release a cheaper 'Xbox Lite' before its true next-generation console launches, it's been claimed.
Infamous Microsoft leaker MS Nerd suggests we'll see the new ARM-based Xbox 360 model launch in late 2013 at a around £100 / $100, with its next-gen console arriving "later".
"At some point after [the Xbox Lite], we'll see a Xbox Next, a true successor to the 360," it writes. "Details about it are very hazy, except that, like the 360, it will do games for core-audiences and the same media apps as the other device, also with Kinect."
The device sounds a lot like Xbox Loop, a codename previously rumoured to be in use internally at Microsoft for a smaller Kinect-focused product set to run on Windows 9.
The same source reported last year: "It will be cheaper than the 360, further enabling Kinect adoption. And it will be far smaller than the 360. It will also demonstrate how Windows Phone could possible implement Win9's dev platform on the lower end."
Microsoft's most recent comment on Xbox 360's as-yet-unannounced successor is that "there will be no talk of new Xbox hardware at E3 or anytime soon".