The new slimmed-down gaming machine will be priced the same as the current console, with two terabyte versions costing £349, while one terabyte machines will cost £299 and 500 gigabyte versions £249.
The Xbox One S is more of an upgrade than a completely new console, and the hardware will continue to play games designed for the Xbox One system.
So what is new?
The new console is 40 per cent smaller than the old one - so it will take up less space under your TV. It will support 4k and HDR streaming and HDR gaming and packs a more powerful processor than the outgoing machine.
So what does that mean? Well, unlike the outgoing console, an upgrade to the HDMI output means that - if you have a 4k TV - the console can output in ultra high definition at 60hz. HDR output means gamers can expect richer colours, deeper blacks and whiter whites.
Upscaling means that games designed for 1080p output will also display in 4k.
The new console is available to pre-order now and Microsoft has confirmed that any pre-orders will be shipped in time for the August release date.
Patient Xbox fans may wish to hold off though, as Microsoft announced earlier this year that a new ‘Project Scorpio’ Xbox will be released in late 2017. It’s expected that Scorpio will feature a massively upgraded processor that will be suitable for Virtual Reality gaming.