We know that Microsoft is working on a new version of their Xbox console which is rumored to be called the Xbox 720, but now it would appear that Microsoft may be working on a stripped down version of their current console.
The new comes from MSNerd, who posted the information on Reddit, and the Xbox Lite would be a stripped down version of the Xbox which would be capable of playing Xbox Live games, and running Kinect apps.
One of the major features of the device is that it TV features of the current Xbox for watching Netflix, Hulu, Sky TV and much more, and the device is rumored to be powered by a low cost ARM processor.
Microsoft would be looking to compete with Apple’s TV in terms of pricing for this new Xbox Lite and the device is expected to launch some time in 2013.
He also revealed some information about the Xbox 720 which is expected to launch in 2014, followed by a new version of Microsoft’s Kinect in 2015.