The Project Scorpio system, which is also VR-ready, goes on sale in holiday 2017. Xbox will also be a great place to build communities by introducing Clubs, Arenas for tournaments and making it easier for players to find a group in online play.
Those hoping to see Microsoft announce a more powerful version of the Xbox One at E3 got their wish.
The Xbox One S is 40% smaller than the original and more powerful since it'll support 4K Ultra HD video. The Xbox One S will be starting at $299 for a 500GB hard drive, but if you want a 2TB hard drive, it will cost an extra $100 at $399 and a 1TB will be $349.
The Xbox One S has an optional vertical stand.
In their head to head battle with Sony and the Playstation, Microsoft are suggesting there's never been a better time to be an Xbox gamer.
The second new Xbox One won't be launching until the end of 2017, but it's already made your existing Xbox One-or the Xbox One S you might have considered purchasing-completely obsolete.
Project Scorpio will have 6 teraflops of GPU meaning a solid and genuine 4K gaming machine with a focus on Virtual Reality.
Recore showed off a new character based trailer that also included some gameplay but no details as to when the game will be available.
Dead Rising 4, another zombie game that sees the return of series favourite protagonist Frank West, as well as the apparent return to a shopping mall setting.
Never Fight Alone: Rev up your Lancer and fight your way through the Campaign with a friend over Xbox Live or via local split screen co-op, with the option to play as JD, Kait or Del.
Microsoft has fended off all your questions before you even asked them: Xbox as a platform won't change. The game's director, Hideki Kamiya, also took to the stage to show-off Platinum Games' "biggest ever boss fight".
Microsoft has finally announced the rumored next iteration of the Xbox One with Project Scorpio.
Like most of the reveals of this E3, the announcement was leaked over the last few weeks.
This article was corrected June 13, 2016 at 4:59 EST to show that Microsoft said it soon would make it possible for fans of "Minecraft: Pocket Edition" to play the block-building game with others using different mobile platforms.