Earlier this week, Microsoft announced its new gaming console, the Xbox One S at the E3 2016 press conference. Soon after the announcement of the Xbox One S, the Redmond giant has slashed the price of the Xbox One to $279.

The original Xbox One was launched in November 2013 with an introductory price of $499. It came with 500 GB hard drive, Xbox One controller and Kinect sensor. However, the company released a new retail configuration of the Xbox One in 2014 without the Kinect sensor. It carried a price tag of $399.

In the previous year, the Redmond giant reduced the cost of the stock model to $349 and launched a 1 TB edition of Xbox One for $399. In May 2016, it slashed the cost of the Xbox One with 500 GB and 1 TB storage sizes to $299 and $319, respectively.

Xbox One Microsoft's Xbox One game console is displayed during an unveiling event in Redmond, Washington. Photo: Reuters/Ina Fassbender

Now that the company has launched the all new Xbox One S, it has further slashed the Xbox One price to $279. Compared to the introductory price of Xbox One, it is now selling with a massive discount of $220.

The Microsoft Xbox One S is smaller device than the original gaming console. It features an internal power supply and it also features a vertical stand to mount the device vertically. Apart from 500 GB and 1 TB storage options, the Xbox One S also features a 2 TB variant.

It carries support for 4K resolution, HDR gaming and Blu-ray discs. The upgraded wireless controller offers better range and carries support for Bluetooth connectivity. The IR blaster feature allows using it like a universal remote for TV and set-top box.

The 2 TB Xbox One S is now available on preorders with a pricing of $399 on Microsoft Store and Amazon. The shipping of the preordered Xbox One S units will start from Aug. 31. Microsoft will be releasing 500 GB and 1 TB Xbox One S variants on Dec. 30. These variants are also available on preorders.