Microsoft Project Scorpio Teased at E3: 8 cores, 6 TeraFLOPs

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On the outside, the Xbox One S looks basically the same as the regular Xbox One, but one difference is the former is noticeably smaller and comes in a new color that Microsoft calls robot white.

"This is just the beginning", Mr. Spencer said. Guess we'll have to wait and see on that one.

He also announced closer compatibility between Xbox One and Windows titles.

With an eye on the future, Microsoft is also working on a powerful new version of Xbox One designed as a platform for exquisite virtual reality and ultra high-graphics games, according to Mr. Spencer.

While Xbox's ridiculously powerful Project Scorpio is still a while off, there is a new Xbox One coming later this year.

First off, let's talk about hardware, Microsoft will relaunch the Xbox One but a slimmer version which will be available in August for $300 dollars.

"Gamers have never had more choice in how and where they play", Mr. Spencer said. Microsoft showed the console in an open-air environment, displaying the importance of adequate air ventilation despite the 40 percent smaller design and inclusion of a refreshed low-power AMD APU. If you already have one Xbox One console and Kinect and plan to purchase the Xbox One S, Microsoft will be offering a free Xbox Kinect Adapter. Finally, that dream is becoming a reality with Xbox Play Anywhere.

Microsoft showed a video in which a number of developers showed the console's massive power - it'll feature "true" 4K resolution, 6 teraflops of GPU power and will run at 60Hz.

Details on its pricing were not disclosed., Reuters reported.