Microsoft is reconsidering the idea of releasing a smaller, low-cost version of its existing Xbox One into the console market to compete with Apple TV. Various reports suggest that it could be a lightweight iteration of the original Xbox One with a proposed launch window for late 2016.

According to Business Insider, the cheaper and scaled-down variant of Xbox One would basically focus on streaming options like games and video services. The article citing a Petri IT Knowledgebase report says the device will not support full-fledged gaming titles like the Halo5: Guardians or disc-based blockbusters like Call of Duty. Instead, one can run only select games and apps from the Windows Store app market.

Similar plans of Microsoft to enter the low-end set-top box market did not materialise earlier and it seems the company has now decided to shift its focus away from the Xbox One, as some reports suggest the company is losing the battle to Sony's PS4.

While Apple pushes ahead to capture the living room space with its new Apple TV, Microsoft is apparently attempting a comeback into the lower segment of the set-top box market by pricing its smaller Xbox One a bit lower than the original, which currently sells for $349.

Considering the new Apple TV price of $149, one can expect the cheaper Xbox One to sell at a similar price point. It is, however, not clear if the Xbox maker will include Cortana support and Kinect capabilities along with a digital personal assistant on the new console.