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Rumors suggest Microsoft may release a white version of the Xbox One in time for 2014's holiday shopping season, and controversially, a budget version of the Xbox One that forgoes the Blu-ray disc drive.

The budget Xbox One, said to be in testing by Microsoft, would solely rely on digitally downloaded content but would cost less than the current pricing of $499. The budget Xbox One could cost the same or less than the PS4, which retails for $399.

Another rumor suggests a 1TB model of the Xbox One is also in the works for a November release, while the white Xbox One could be released a month earlier. A white version of the Xbox One does exist already, a special edition model given to selected employees at Microsoft engraved with the words "I made this". One such white Xbox One sold for more than $11,000 when it was put up for auction on eBay.

These and other rumors, such as a April launch for the Xbox One in the important market of Japan, were reported by The Verge.

Responding to these rumors, Wedbush Securities analyst Michael Pachter labeled the drive-less Xbox One one of the "dumbest ideas of all time".

"I have three words for this idea — dumb, dumb, dumb," said Pachter in a note to investors. Pachter says the move will alienate retailers like GameStop, whose gaming business relies on the continued use of discs.

Pachter was also skeptical as to whether a $399 drive-less Xbox One would be competitive with the PS4. "In our view, of the two $399 options, the PS4 would be the more popular, as it would include a disc drive, giving the purchaser the option of trading in or selling his games when he chooses. In addition, a disc-less box prevents the gamer from playing the disc-based games he has already purchased, limits portability, and decreases his ability to use his PowerUp Rewards credits," Pachter wrote.

Microsoft is also planning a major dashboard for the Xbox One in March to fix outstanding issues, a rumor that has been separately verified by The Verge.