Photo:

Microsoft will release two very different versions of its next-generation XBox console, according to reports.

GamesIndustry.biz suggests that one version will be akin to a "pared-down" set-top box, priced as cheaply as possible, aimed at casual gamers.

A second console, said to be a "more fully-featured machine", will come with optical drive, hard disk and backwards compatibility, and would be aimed at hardcore gamers and released at a higher price-point.

Kinect will come bundled with both versions.

With speculation rising about a new console, Egde has suggested that it will be announced at E3 2012 and released before the end of that year, but GamesIndustry still believes that an early 2013 release is more likely.

Adding to the recent rumours is French site Xboxygen, which has reported that Microsoft plans to unveil its next console at the CES show in Las Vegas in January 2012.

The only confirmed new console for next year remains the Nintendo Wii U, which will be released in time for Christmas.

A history of the games console...