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If Microsoft does this, it makes sense, not for the casual console owner, but the more hardcore console owner. 

People's who have invested in an Xbox One will still be able to play new games, they will just look better on the Xbox One S.

Microsoft is actually listening, look how many people have posted how weak the Xbox One is compared to PC's.

I think every 3 years there is a major leap in GPU speed on PC's. It looks like Microsoft is looking to keep up with PC's with Xbox. This is could bring some PC gamers back to Xbox.

I am looking to E3 2016 for an announcement as this holiday would be 3 years since Xbox One has been out. Xbox One S anyone? E3 can't come soon enough.