Rumor: Microsoft Cutting Xbox One Price, Introducing Cheaper Models

Cheaper Xbox One models are planned for later this year.

Rumors continue to surface around Microsoft's Xbox One as VG247 says a source confirmed a new, cheaper Xbox One model set to launch this year.

The VG247 source couldn't confirm if the new model would remove the disc drive, instead the new model would release cheaper than $499. With the new model, VG247 says the current Xbox One model will drop in price to match the PlayStation 4's price of $399.

Previous rumors said Microsoft plans to release new Xbox One consoles without disc drives and a larger hard drive. Before the Xbox One launch, Microsoft considered releasing an Xbox One without a disc drive, but ditched the idea and stayed with physical distribution.

To help players migrate to the Xbox One, Microsoft is offering $100 to people who trade in their PlayStation 3 consoles. The Microsoft Store credit goes towards an Xbox One console an drops the price down to $399.