1TB Xbox One and New Controller Announced, as 500GB Model Gets Price Drop

Just days before E3, Microsoft makes major hardware announcements.

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Confirming earlier reports, Microsoft on Tuesday officially announced a 1TB Xbox One and a new controller.

"Since Xbox One launched, one of the most frequent requests from fans is to add more storage to their consoles and today we're delivering," Microsoft said.

The console, which will sell for $400 and does not include a Kinect camera, comes with a new matte finish and a free copy of Halo: The Master Chief Collection. It launches at retailers on June 16.

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Also included in the package is a new Xbox One controller, which, as rumored, will feature a 3.5mm stereo headset jack. With a headset plugged in, users will be able to adjust headset volume, mic monitoring, and voice and game audio balance by way of the Xbox One's settings menu.

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"We've also improved the quality of audio coming through the controller and increased the maximum audio volume on headsets used with this controller, based on fan feedback," Microsoft said.

All current controller accessories will be compatible with the new Xbox One controller.

It's not just audio tweaks, however, as the new Xbox One controller's bumpers have been "fine-tuned...for a more consistent performance anywhere along the full surface of the bumper." What's more, you will no longer need to connect your controller through USB to receive updates, as the new input now supports wireless firmware updates.

The new Xbox One controller will be available through the 1TB Xbox One bundle and by itself in black or a new camouflage design.

Microsoft also announced that, starting right now, the 500GB Xbox One's price has dropped to $350 permanently. This is not all that surprising, as Microsoft had been offering the console for that price for many months now.

In the UK, the new 1TB Xbox and controller will retail for £349.99 and will be shipping "immediately," to be available in stores tomorrow. It seems that the new version of the console will be exclusively sold at Game for a limited period. Standard 500GB models, meanwhile, will now retail for £299.99.

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