One of Microsoft's key announcements at the E3 trade show in Los Angeles this May could be the unveiling of a smaller, redesigned Xbox console - answering constant criticism of the size and bulk of the current hardware.

It's not clear how Microsoft could make the system much smaller - although if we were to speculate, we'd wonder if the firm hasn't cottoned on to the idea of using slimline laptop-style components, and possibly even a laptop-style processor which would create less heat and thus require smaller cooling fins. This would, however, increase the unit cost of the console - and thus Microsoft's loss per unit.