Xbox One
Next Xbox One update to feature Reuters

As the 2016 edition of the annual gaming event E3 draws closer, rumours have been suggesting a possible new hardware from Microsoft for its Xbox One, similar to another rumour that suggested Sony is developing "NEO," a powerful hardware colloquially called PlayStation 4.5 or PS4K.

New rumours have surfaced online, suggesting the possibility of Microsoft revealing a new Xbox One hardware, purportedly titled, "Xbox One II" or "Xbox One second generation" or "Xbox One two," says a post on NeoGAF.

The post also notes that development of the proposed hardware started in February 2014, and the console was being mass-produced from February 2016.

Meanwhile, technology website Thurrott reported Microsoft could also reveal a new standard controller which might ship with the new hardware. The company could also be working on what the report calls "Elite console."

The report goes on to say the new controller is similar to the current controller in design, but is likely to come in newer colours. This might be designed to push more Xbox One sales.

It also said Microsoft is "exploring" newer interactions between PC and Xbox One, something Microsoft has also spoken about previously. The company is looking to expand beyond game streaming and might want to "leverage the ecosystem" to create "unique experiences" with Windows 10 and Xbox One.

Meanwhile, in other Xbox One news, Larry "Major Nelson" Hyrb, director of programming at Microsoft, revealed via a Twitter post that the company has added two more video games for its Xbox One Backward Compatibility roster list — "Frogger" and "Galaga Legions DX." Only on Thursday had the company added five new video games to the Backward Compatibility list.