AMD is working on a smaller processor for the Xbox One, which means there is a high possibility that Microsoft is working on a slim version of the console destined for a 2015 release date.

AMD's Senior SOC Physical Design Manager has accidentally leaked the information about the new chip design via his LinkedIn account. While this is exciting, it could take some time for the company to finish work on the design, and for Microsoft to implement it into a new Xbox One system.

The current AMD APU slapped inside the Microsoft console, is 28nm, and that's not particularly bad at all. However, moving to the 20nm AMD APU should allow Microsoft to design a small Xbox One unit that requires less cooling when compared to the current model.

Manufacturing costs should also fall, so an Xbox One slim device would likely be more inexpensive. Probably along the lines of $299, that's the price we believe Microsoft would aim for if the company should ever release an Xbox One slim in the near future.

With the way Sony is controlling the market with the PlayStation 4, one would expect Microsoft to be thinking about adding a cheaper model sooner rather than later. The company must know by now that it cannot beat the PlayStation 4 at the same price point, nor will it be able to come out on top with better exclusives.

Why is this? Simple, third-party games on the PlayStation 4 are performing better when it comes down to resolution and frames per second. The Xbox One is an inferior console where hardware is concerned, and this is something that will never change.

We should also point out that the PlayStation 4 also uses a 28nm AMD APU chip inside, so it is safe to say that a 20nm design is also in the works. Still, Sony is in a great position right now, meaning the company does not need to make moves toward a slimmer and cheaper PlayStation 4 right now. The console is selling well at $399, and its form factor is already slim and sexy.

Interestingly enough, if Sony should ever consider designing a slimmer PlayStation 4 and sells it for $299, Microsoft would have to sell the Xbox One slim at $249.

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