Phil Spencer, the head of Xbox has confirmed that his team are working on the development of Xbox One Scorpio.Twitter/Xbox

Microsoft's had recently released Xbox One S, a slimmer version of Xbox One. While Xbox One S is being sold like hot cakes, the company has already started development of its next console, Xbox One Scorpio. Phil Spencer, head of Microsoft's Xbox division, has confirmed that the company has started working on Scorpio.

Spencer's tweet was prompted by a question from a fan who wanted to know if developers were working on the new Project Scorpio (another name for Xbox One Scorpio). Spenser replied with an affirmative, saying, "Yes, hardware, platform and games."

Xbox One Scorpio will be pitted against Sony's upcoming new console, PlayStation Neo. Microsoft's mid-generation upgrade is predicted to be powerful than PlayStation Neo.

The Xbox One Scorpio is likely to feature 8-core CPU with 6TFLOPs (trillion floating point operations per second) of power.

Previously, Spencer had told The Verge that "I actually think the upgrade to Scorpio in terms of visual fidelity will feel as dramatic of a change as we're used to seeing in new generations."

Microsoft has made it clear that it is up to the development community to decide if they want to develop exclusive games for Scorpio.

So, exclusive games for Scorpio might be a rarity and the games that we normally play on Xbox One might have play with a visual boost.

Though it is hard to predict, rumours have suggested the price of Xbox One Scorpio to be somewhere around $600.

Xbox One Scorpio is expected to be released during the Holiday 2017 season.