Talk of such super-aggressive pricing strategy originated on the Beyond3D forums, where a tipster named Eastmen revealed that the Lockhart/Series S would be 'half the price of the Series X' and come in a small form factor.
According to Eastman, Microsoft are "prepared" to price the fully specc'd, all-singing-all-dancing Xbox Series X from $400 (about AU$600), meaning that the Lockhart/Series S could debut for as little as $200 (about AU$300).
That may sound like an astonishingly low figure - and would surely undercut the price of the PS5 All Digital Edition - but console hardware is often sold at a loss in order to amass a large customer base. As with previous Xbox launches, Microsoft could quickly claw back any losses by taking a cut of software sales and Game Pass subscriptions.
Eastman has also tipped Microsoft to hold a July event to announce both next-gen Xbox consoles, with the company reportedly wanting to make it a "night of mic drops" by revealing games and perhaps even a content streaming platform to rival Netflix and Amazon Prime.
Finally, Eastman alluded to the 'surprising' size of the Lockhart console – could we be about to see the first pocket-sized or handheld Xbox?
If the rumours are true, we won't have to wait long. In the meantime, we've compiled this comprehensive Xbox Series X: latest news, rumours and leaks guide.