It looks like fans will be introduced to two new Xbox consoles soon, including a slimmer version of the Xbox One this year and a more powerful Xbox Two sometime next year.

Microsoft is reportedly planning to unveil a slimmer version of their new-gen console, Xbox One, at this year's Electronics Entertainment Expo, or E3. The Verge states that the new Xbox One version will be slimmer by 40 percent supports 4K video. The site also claimed that the slim model will be equipped with a 2TB hard drive, which is twice the space capacity of the current model. 

Kotaku echoed this claim, adding that the smaller model will probably be cheaper. Polygon further claims that the slim version of the Xbox One will get a redesigned controller as well. The console is scheduled for release in August, although the price for the console has not yet been finalized.

Meanwhile, several other news outlets have confirmed that Microsoft is also developing a more powerful Xbox console, codenamed 'Scorpio,' and is rumored to launch by 2017. The new Xbox will boast a more powerful GPU. Apparently, Microsoft is aiming for a partnership with Oculus.

The two upcoming Xbox consoles are said to be part of Microsoft's 'Project Helix', which aims to combine Xbox and Windows. According to sources, Microsoft is looking at the possibility of being able to release future game titles on both platforms.

E3 is fast approaching and - if the sources are correct - gaming fans will get to see a brand new console on the market before this year ends. And with the Playstation 4.5 also rumored to be unveiled at the games expo, its seems like it's going to be another 'Sony vs Microsoft' showdown.