Rumors circulating through the LinkedIn world via an AMD senior manager seem to indicate that Microsoft will be shifting from 28nm APU chips to 20nm APU chips in the next revision of the Xbox One. The move to 20nm has been rumored for some time.

With the move to a smaller APU, the cost of the cooling and the processor will go down. The processor and its cooling solution are among some of the most costly parts in every gaming console. Of course the box will also get smaller as the integration of the mail board will also get improvements not to mention the physical case/box itself. A rumored move from DDR3 to DDR4 is also likely as a smaller and lower cost power brick.

In the end there you have a lower cost and smaller version of the Xbox One console. This of course is good news for Microsoft who likely wants to quickly reduce the price of the console to drop the price even more to generate more sales and help vault its sales up closer to the PlayStation 4.

So when do we suspect that we will see an actual new console? Well, our sources say that while Microsoft is in the early stages of development, testing will need to take place, and of course that means it will take some time. We suspect that Microsoft will be targeting it for an introduction at E3 as it works through selling the inventory that is already built and the parts already made for the next round of Xbox One builds.