(RUMOR) - Xbox Lite?Spong.com reports that a smaller model Xbox is to be shown at this year's E3 Expo. The new machine, to be called Xbox Lite, is said to be around the size of the PlayStation 2. Changes include a flatter machine, making it stackable, with a great proportion of the ridging and embossed X being lost. It is believed that the idea of the smaller Xbox is because of many consumer complaints of the Xbox's large dimensions. It has also been rumored much of the talks and confirmation of the new Xbox Lite existance started at this year's CES. This decision continues along with Microsoft's recent efforts to listen to gamers, as we have already seen with the reduction in the controller size. They are hoping that a new look will appeal to a wider range of consumers, particularly in the East, where the Xbox continues to struggle. This might spark sales and might potentially be a cost cutting measure to reduce the amount of material required for each Xbox, because as it currently stands the expense outweighs the revenue on each unit they sell. Spong.com also reports the Xbox will soon be equipped with a portable handheld device called Media2Go. This unit will be a multimedia delivery system, for both PC and Xbox (using Xbox Live) that will see pay-on-demand movies, music and possible games become a reality for the Xbox. They believe this is the true destiny of Xbox, and its Xbox Live system. They expect a full demonstration of Media2Go for Xbox, will be held some days before E3. This of course is all rumour, but Pat Ohaura, director of Xbox in Japan has recently moved to the United States to find ways to better market the Xbox in Japan also directors at the Xbox Live Bootcamp were asking attendees questions regarding the Xbox's look. Both of these points offer at least some type of validity to this story. We will keep you posted.