Update: Microsoft has now denied the reports:
Priced out of the latest games console releases and their £400 plus asking prices?
Well, Microsoft might be about to ship a cheaper version of its flagship Xbox One machine.
A number of sources claim a $399 (£244) version without an optical disc drive could be set to ship out.
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VG247, CVG, The Verge and NeoGaf all cite "reliable" or "well-respected" persons who say it is the case.
However, Microsoft have yet to confirm and there are no rumours about a UK release date or price.