Microsoft’s Project Scorpio console has been described as the most powerful console ever made and that it will be able to deliver true 4K gaming. That is why Xbox head Phil Spencer has confirmed that the Xbox Scorpio will be pricier than the Xbox One S.

“Scorpio will be a premium console. It will cost more than S, obviously, that’s how we’re building it,” Spencer told LevelUp.Com in a recent interview. “We haven’t announced price points for Scorpio yet, but I want to make sure the investments that we’re putting into the product of Scorpio meets the demands of the higher end customer, and that will be a higher price.”

Spencer also confirmed that the Xbox One S will be Microsoft’s most affordable console come 2017. This also suggests that the company might be planning a price cut for the Xbox One S when Project Scorpio is launched in fall 2017.

Spencer also talked about how customers are now able to pick and choose what console they want to fit their needs and budgets. He pointed out that even though the Xbox one S has already been released, there are still those who would much rather purchase the original model which is now more affordable. That being said, Spencer noted that Project Scorpio is for customers who demand “the most that they can get from a console,” justifying the higher price.

Both Sony and Microsoft are now changing its strategies when it comes to their respective gaming consoles. Instead of just releasing a new generation console every few years, both companies are now dedicated to releasing refreshes in a shorter period of time. It also allows both companies to offer two variants of their respective consoles: a regular model and a “premium” model.

Sony’s PlayStation 4 Pro was just released this month and currently sells for $399. The PS4 Pro is able to run games and stream online videos in 4K. Microsoft claims that Project Scorpio will be a lot more powerful than the PS4 Pro even claiming that it will be able to run games in “really true 4K.”

The Xbox One S starts at $299 for the 500GB model and caps off at  $399 for the 2TB model. It’s possible that Project Scorpio could start at $399 with its price going up for models with bigger storage, as pointed out by Gamepur.