Microsoft is set to unveil a cut-down version of its Xbox console at this year's E3 event in the US, according to numerous well
placed industry sources. The new version of the hardware is thought to be more akin to Sony's PlayStation 2 console in size,
boasting flatter casing, ideal for stacking.

The specifications for the new Xbox will remain largely identical to the current model, it is believed, though it's expected Xbox
Live software will come installed as standard. According to one source, acting under conditions of anonymity: 'The cut-down
Xbox is Microsoft's big hit for E3, along with Halo 2.'

The size of Xbox has been the subject of unfavourable comment since the console's launch, and following the release of redesigned
joypads, smaller, more living room-friendly hardware is the next logical step.

A Microsoft spokesperson would only state: 'We do not comment on rumour.' Expect full details from the E3 games show this May.

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