MSFT Microsoft Corporation

By Nathan Olivarez-Giles 

Microsoft Corp.'s next Xbox, the Xbox One S, lands in stores on Aug. 2. But while the new videogame console is a smaller and more powerful than the original Xbox One, gamers should consider a few things before opting into an upgrade that will set them back $399.

What's new

The Xbox One S is 40% smaller than the original Xbox One, so it is far less of a clunker. Even better, its power supply is built in, invisible instead of hanging out and taking up space like the first Xbox One's. And the Xbox One S can stand vertically -- this was a hallmark of older Xboxes, but something the first Xbox One couldn't do.

While the Xbox One S has a faster processor, the biggest under-the-hood difference is 4K video. Thanks to some added processing power, the Xbox One S will stream 4K video from services like Netflix and Amazon Video. The Xbox One S will also play the new Ultra HD Blu-ray discs. And it will upscale 1080p games to 4K.

The Xbox One S will also support videos with a feature called High Dynamic Range (HDR), a feature of high-end televisions that can display a wider range of colors to create more detailed and realistic images.

Both the 4K and the HDR will only benefit people who have compatible TVs. If you are one of the vast majority of people whose flat-panel TV has 1080p (aka "full HD") resolution, you won't see any difference.

Otherwise, the Xbox One S is the same console as the original Xbox One. Both systems will play the same games, run the same apps for streaming music and video, and offer a very similar user experience overall. Both will get Cortana, Microsoft's voice-controlled assistant, in a software update next month.

The Xbox One S launch edition is available for preorder now, and will be in stores Aug. 2 for $399 with a 2-terabyte hard drive. A 1TB version of the Xbox One S for $349 and a 500GB version for $299 will go on sale in the next few months as well.

But before you preorder, bear in mind that the Xbox One S isn't the only new Xbox Microsoft has in the works.

Another Xbox is coming

If you are in the market for any Xbox One and you want it this year, buy an Xbox One S. But the Xbox One S is a stopgap console. Microsoft has said it plans to release another new Xbox next year that "will be the most powerful console ever built."

The new console -- dubbed Project Scorpio for now -- will support 4K and HDR video and gaming, like the Xbox One S. But it will also support virtual-reality gaming, though Microsoft hasn't yet said which VR headsets will be compatible. (Microsoft has a working relationship with Oculus, and both companies compete with Sony Corp. and its soon-to-launch VR headset, but that doesn't automatically mean that the Oculus Rift headset would run on Scorpio.)

So for some people, there is a bit of a decision ahead: If you already own an Xbox One, moving to the One S may not make sense unless you really want a slimmer model and don't care about being first when the Scorpio surfaces.

However, Microsoft needed to hit the market with fresh hardware, because the original Xbox One console lags behind Sony's PlayStation 4, both in technology and in sales.

In May, Sony said it has sold more than 40 million PlayStation 4 consoles. Microsoft stopped reporting its Xbox console sales in fall 2014, but the last reported figure was more than 10 million units. Analysts estimate that Microsoft has sold a total of about 20 million Xbox One consoles by now.

While Microsoft uses the Xbox One S and Project Scorpio to create Xbox buzz, Sony is taking a similar tactic, promising a new PlayStation console that will support both 4K and VR. There is no word when it will go on sale, however, nor how much it will cost when it does.

Write to Nathan Olivarez-Giles at Nathan.Olivarez-giles@wsj.com

(END) Dow Jones Newswires

July 18, 2016 18:56 ET (22:56 GMT)

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