The Xbox One has been around for over a year now, and it's reasonable to assume Microsoft's juggernaught will at some point be put on a diet.
Daniel McConnell, AMD's senior manager of system-on-a-chip design, recently updated his LinkedIn profile to take into account development of a new: "cost-reduced derivative in 20nm technology." Needless to say the entry has now been removed, after it was picked up by Eurogamer.
It's significant because the Xbox One currently uses an AMD processor built on 28nm technology and a smaller chip could mean, by extension, a smaller console.
The current processor is one of the most expensive components inside Microsoft's console and also accounts for the hefty footprint of the console. While it's possible we'll see smaller versions of both the Xbox One and PS4 next year, both companies have remained tightlipped about any future plans.