According to an alleged Chinese manufacturing image posted on NeoGAF, an “Xbox One II” is already in production and has been since February, with initial planning starting in February 2014.
It’s quite possible this is not a legitimate image but if it is, Xbox One II is presumably an internal name used for differentiating the new systems from the original Xbox One. That being said, no one ever expected Microsoft to follow the Xbox with the Xbox 360 and then the Xbox One so who knows.
Also unclear is whether this is merely a slim version or a more powerful console. However, it seems the company may be hoping to reduce the console to just 800g (around 1.76lbs) from the current 3,000g (6.6lbs). Microsoft has previously suggested that they may remove the Blu-Ray drive for a digital only console. The drive contributes around a third and also requires power while generating noise.
Recent reports, including a filing with Brazilian state body Anatel, have suggested that Microsoft is prototyping multiple new Xbox One hardware variations. Microsoft also has a non-disclosure agreement (NDA) with the Federal Communications Commission (FCC), the US government agency responsible for approving devices such as the Xbox One. That NDA expires on June 25th, 12 days after Microsoft’s E3 press conference.
FCC filings have previously revealed new phones ahead of their official reveal.
While Xbox head Phil Spencer has denied plans to offer upgraded or upgradable hardware but it’s looking increasingly likely that there will be some form of hardware revision announced at E3.
Sony is also reported to be working on a more powerful version of the PlayStation 4.