Microsoft Corp. has unveiled an upgraded version of its Xbox one videogame console for virtual-reality and 4K resolution gaming at a media event in Los Angeles before the annual E3 conference on Monday. It is also planning a slimmer version of the Xbox One.

The announced gaming console codenamed as “Project Scorpio,” is expected to come in the 2017 holiday season. Microsoft game chief Phil Spencer at the Galen Center described the developed console as “the most powerful console ever built.”

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Microsoft claims that the Xbox Scorpio console will have a six teraflop GPU, 8 CPU cores and it supports full 4K resolution gaming and high-fidelity virtual reality. So, the new GPU’s power and speed promises a major boost, “I think it’s gonna be magical,” Bethesda’s Todd Howard said. The Tech giant also added that the developers are really excited to make games on Scorpio. Xbox boss Phil Spencer also mentioned that all the future Xbox games will be compatible with all three consoles.

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Storage capabilities of the new gaming consoles are unclear yet. But the giant said that Xbox One S, a limited launch edition which is 40% smaller in size and can sit vertically will come with up to 2 terabytes of space for $399 and a 1 terabyte version for $349. And another one which is available at $299 provides 500 gigabytes.

Microsoft on Monday announced that it would shortly make it possible for fans of “Minecraft: Pocket Edition” to play the block-building game with others using different mobile platforms, including iOS, Android, Kindle Fire and Gear VR. Well, the company also announced a new initiative with an aim at making Xbox live online gaming more comprehensive. And it disclosed that the coming Xbox One titles include “Scalebound” and “State of Decay 2.”

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Now, Scorpio will compete with the Sony’s high end Playstation PS4.5 which is codenamed Neo. Sony has confirmed Neo last Friday. CEO Andrew House said that Sony will not be showing and talking about the new play station at E3 this week.

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