You have to look back a couple of years, but in 2018 it was rumored that Microsoft was working on two next-generation consoles, a high-end one, the Xbox Series X and another cheaper version named Xbox Series S. That rumor is now back.
Reports indicate that Microsoft it to release an Xbox Series S at a digital event in early May. The Xbox Series S would currently already be tested by Microsoft employees. What else could be shown at this rumored May event? Well, the same rumors suggest that we will see new game trailers and revelations ( Halo Infinite and the new Fable may appear) and new wireless headsets for Xbox.
It's a rumor at this point though so take it with some fine grained salt.