Microsoft will not be making a smaller Xbox One any time soon, it seems, after Xbox head Phil Spencer shot down the rumour with a tweet.
The company has scheduled a big hardware announcement even for October, where we're expecting to see the Surface Pro 4, amongst other devices from Microsoft - which is why chatter about a possible smaller-form-factor Xbox gained so much potency.
According to The Verge the suggestion was that a redesigned Xbox One would drop the ability to play Blu-Rays (and presumably the Blu-Ray drive?), be much quieter than the current behemoth, and shrunk down to about a third of the size. But this appears to have been wide of the mark:
@av_xz Not real.
— Phil Spencer (@XboxP3) August 27, 2015
It is probable that at some point both Microsoft and Sony will redesign their consoles - but just not yet. As a console life cycle goes on, manufacturing becomes cheaper and unpopular features are often dropped. When the PS3 was shrunk down, it lost PS2 compatibility for example - and conversely, when the Xbox 360 was shrunk it gained wifi - a technology that was only embryonic when the original console was released. [The Verge]