A number of Japanese magazines are reporting that Microsoft is moving ahead with plans to release a redesigned Xbox, dubbed "Xbox 1.5", which will come in a significantly smaller case than the original model.
Weekly magazine WAM has reported that the new system will be launched alongside the MMORPG True Fantasy Live in Japan later this year - a move which would make sense, given that True Fantasy Live is one of Microsoft's key hopes for invigorating sales of the Xbox in that territory.
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