16:39 15 June 2016
Microsoft has revealed a slimmer version of its Xbox One console, the Xbox One S. It also announced Project Scorpio, another console that offers virtual reality and 4K gaming that is set to be released by Christmas 2017.
Meanwhile, the Xbox One S, which pictures were leaked ahead of E3, supports High Dynamic Range gaming and include 4K DVD and Blu-Ray playback. It also features extra levels of brightness and more colour.
Games industry analyst Ed Barton of Ovum said that it is an unusual move to release a new version before a completely refreshed device is launched.
He added: "We are in slightly uncharted waters. There's a risk of the market already being saturated."
Meanwhile, Sony is set to launch an upgraded version of its PS4 console in early 2017. Piers Harding-Rolls at analysts IHS that the earlier release date for the Xbox One S could give it an edge in terms of sales.
Microsoft also confirmed cross-platform access, Xbox Play Anywhere, allowing gamers to play a title for one on Xbox or Windows 10 PCs at no added cost. This also allows gamers to play online with other via systems of their choice.