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  PS2-SIZED XBOX FOR E3?
Time: 00:10 EST/05:10 GMT | News Source: Computer and Video Games | Posted By: Anthony Darr

Microsoft is set to unveil a cut-down version of its Xbox console at this year's E3 event in the US, according to numerous well placed industry sources. The new version of the hardware is thought to be more akin to Sony's PlayStation 2 console in size, boasting flatter casing, ideal for stacking.

The specifications for the new Xbox will remain largely identical to the current model, it is believed, though it's expected Xbox Live software will come installed as standard. According to one source, acting under conditions of anonymity: "The cut-down Xbox is Microsoft's big hit for E3, along with Halo 2."

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