Microsoft is sharing how it will permanently cut the price of the Xbox One while simultaneously charging $400. The answer: a new version of the console.
An Xbox One with a 1TB hard drive will start going on sale June 16 for $400. In addition to double the storage space, Microsoft has also made a few other changes. This includes a new matte finish for the box. This system will also come with a revamped version of the Xbox One controller that has a built-in 3.5mm headphone jack as well as improved bumper buttons, which was a source of frustration for some players with the original gamepad. The controller will also go on sale for $65 on June 16, and you can get it in black or with a Special Edition Covert Forces paint job. The original $350 Xbox One bundle will stay on the shelves alongside this system, and that will serve as one of the primary ways that Microsoft will try to lure consumers away from purchasing the $400 PlayStation 4 instead.
Take a look at the video below for a closer look at the new system and controller from Microsoft Xbox evangelist Larry “Major Nelson” Hryb:
On top of the bundled controller, Microsoft plans to include Halo: The Master Chief Collection in with the 1TB system. This should continue to help the Xbox One sell well after a strong April, when the system actually outsold the PS4 for the first time since December. But with E3 fast approaching, Sony could counter this with a move of its own — although it has sold more than 20 million PS4s without having to get too aggressive with price cuts and bundles so far.