Microsoft announced Xbox One S with Project Scorpio

Microsoft may be planning a full assault on the game market, targeting a more flexible style of gaming in the coming years, but Sony has held back from another direct head-to-head with the company. Confirming the rumors that have been swirling for months, a slimmer version of the console, called the Xbox One S, will be hitting shelves starting in August with a $400 limited edition that includes a 2 TB hard drive.

Video game consoles used to stick around for a while. Taking a page out of the Moto Maker's book, Microsoft is opening the Xbox Design Lab, where buyers can customize nearly every aspect of the controller they will be buying.

Moreover, Microsoft also discussed "cross-platform play" during the conference, announcing the new campaign, Xbox Play Anywhere.

After officially confirming the existence of the Xbox One S, Microsoft reveals that the new model of the console requires an adapter to use the Kinect device.

At last year's E3 expo, Microsoft said that it would bring Xbox-only games to PCs.

It will also come with a 2TB option that is priced at $400.

Spencer promised that the Scorpio version of Xbox One would enable virtual reality experiences without any sacrifice of performance.

Since they were both launched in 2013, sales of the Xbox One have lagged behind the PS4. Microsoft said the new console will also have the ability to be placed horizontally or vertically, "in response to fan requests worldwide". One massive announcement that kind of took everyone by surprise was the announcement of Xbox-Project Scorpio.

Recore showed off a new character based trailer that also included some gameplay but no details as to when the game will be available. The Underground expansion for The Division will be playable from the 28 of June, and EA Access subscribers on Xbox One can play Battlefield 1 eight days before its official release on the 21 of October.

Though this is a smart move, there are those who may not be happy about it. In their eyes, having games released on the PC diminishes the value of the Xbox One and makes it not worth getting. At a launch price of AUD$549, the Xbox One S is, surprisingly, good value when compared to dedicated 4K Blu-Ray players from the likes of Samsung and Panasonic, which now start at AUDD$599.

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