One version will be a "pared down machine" at a budget price - not unlike a set-top box - which is designed primarily for Kinect gaming and video streaming, according to GamesIndustry.biz.
The other will be a more traditional games console, complete with disc and hard drives and backwards compatibility, as well as a higher price point.
Hands-free motion controller Kinect is expected to receive a "significant upgrade" and will be bundled with both systems.
It was added that a 2012 release is unlikely, with recent developer feedback for an improved Kinect taking place recently, and since a rushed launch would give them no real advantages due to a lack of competition.
The report collaborates with a recent rumour that a smaller, cheaper Xbox successor codenamed Loop would focus on Kinect gaming.
Elsewhere, Saints Row 4, Alan Wake 2 and other titles have been reported to be in development for the system.
The new Xbox is expected to be announced formally at CES in January or E3 in June.