Could Microsoft be preparing a new, more powerful version of its Xbox One gaming console to power the Oculus Rift virtual reality headset? Well, that seems to be the buzz reported ahead of this next month’s big E3 gaming conference.

According to sources at Kotaku, the new upgraded Xbox One console, codenamed ‘Scorpio’, features a number of drastic improvements, including an upgraded GPU that will be “technically capable” of supporting the Oculus Rift. Microsoft is reportedly pursuing a partnership with Oculus, which could mean we’ll possibly see native support of the Oculus Rift on the new Xbox.

Currently, the Oculus Rift requires an expensive high-end PC with specs that are far more superior than those of any console on the current market. With Xbox ‘Scorpio’ rumored to launch in 2017, not only will this be a way for Microsoft to compete against Sony’s similar hardware upgrade that supports the PSVR, but it could also be a big boost for Oculus to attract more mainstream users to the Rift.

This move seems like a natural progression for Oculus and Microsoft, considering they have a unique partnership already in place. Right now, every Oculus Rift that is shipped to consumers comes with an Xbox One controller packaged in the box, and Microsoft has even announced plans last year to allow Rift users to play Xbox One games in a “virtual theater.”

While we still have to wait until E3 next month to confirm if these rumors are true, it’s exciting to see virtual reality making such an impact on the gaming industry in a big way. Stay tuned for more details soon, as this story develops.