The console wars will again heat up, as speculations suggest that Microsoft will be launching its next-gen Xbox soon.

According to Polygon, Microsoft has at least two Xbox versions currently in the pipeline. The industry follower received information from its own inside sources. Reportedly, it is already confirmed that the Redmond-based tech giant will be releasing the vaunted Xbox Two as early as next year. Meanwhile, a redesigned version of the Xbox One will appear in the upcoming 2016 E3, complete with a new controller.

The Xbox Two, codenamed Scorpio, is said to be appearing in 2017, although Microsoft may hint at the next-gen console at the E3 . This is reporteldy a way for the company to go head to head with its major competitor Sony, which has plans to unveil its souped-up PlayStation 4 Neo at the said event. While it remains unconfirmed, this is possible since the Xbox Two is said to be at least four times more powerful than both the original PS4 and the upcoming Neo. The original PS4 has a peak performance of 1.84 teraflops, while the PS4 Neo is said to peak at 4.14 teraflops. If the sources are correct, the Xbox Two trumps the two Sony consoles, since the Scorpio is said to have a performance output of 6 teraflops.

Tech Crunch says that with the output power in mind, Microsoft could be venturing into the VR industry with the rumored Xbox Two. Apparently, its specs and performance targets make it compatible with high-end VR systems like the Oculus VR headset. Although Microsoft has yet to announce if the Scorpio will come with VR support, it is a highly likely idea, since Sony already has its own VR-content system with the launch of the PlayStation VR.