Microsoft has two new Xbox consoles on the horizon, according to reports on Kotaku and corroborated with Polygon's own sources. Those sources also told Polygon that one of those new consoles will be over four times more powerful than the current Xbox One and that the announcement at E3 was triggered by, among other things, a faster than expected timeline for Sony’s own upgraded PlayStation 4. The other console, a slimmed down version of the current hardware, will also be getting a redesigned controller.
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The other console, codenamed Scorpio, is unlikely to be released until late 2017 according to Polygon's sources. It will likely be announced in the next month, though plans are somewhat in flux. Like the all-but-confirmed PS4 "Neo," Scorpio represents an evolution of console generations, one that straddles the line somewhat between an entirely new installment of the Xbox platform and a continuation of the existing Xbox One.
Power is a primary concern for Microsoft with Scorpio. The PS4 has remained a constant leader over the Xbox One in this respect, with games on the platform running at higher resolution and a higher framerate on the PS4 than their Xbox One counterparts. Microsoft is determined to end this narrative.
The Xbox One is believed to operate a peak target of 1.32 teraflops, compared to the 1.84 teraflop performance numbers attributed to the PS4. Meanwhile, per documents secured by Giant Bomb's Austin Walker — and corroborated by our sources — the PlayStation 4 "Neo," at approximately 2.25 times more powerful than the PS4, is likely to have a peak performance number of 4.14 teraflops.
The current performance target for Microsoft’s Scorpio is approximately 6 teraflops.
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A price for Scorpio is also still under active discussion, and is unlikely to be revealed until next year.
More clear, however, is that "universal compatibility" is a core principle for the system. Scorpio is currently being designed to support all Xbox One software.