Xbox's Project Scorpio console will be reasonably priced.
Despite fears that the new console, which will be released next year, would break the bank, Xbox One boss Phil Spencer has assured fans it will be part of a "good price continuum".
Speaking about the upcoming X Box One S console and Project Scorpio, he told WinBeta: "When we designed both of these, we kind of designed it in parallel.
"We thought about the price performance of what we wanted to hit with the Scorpio, relative to what we were going to be able to do with the S. So that we would have a good price continuum, so people wouldn't look at these two things as so disconnected because of the price delta."
Xbox One S' most expensive model will cost £350 and it is believed that Scorpio could start at £400.
Spencer added: "I think you will feel like it's a premium product, a premium console. And not something, anything more than that. So I wouldn't get people worried that this thing is going to be unlike any console price you've ever seen. We didn't design it that way.
"That said, the opening price point for the Xbox One S, and the different hard drive sizes, that is a critical part of this whole product. When I think about it as a product line, you should expect the pricing to kind of be in line with that."
Microsoft claims Project Scorpio can run games at ultra-high definition 4K resolution showing 60 frames per second - four times the power of an original Xbox One - giving gamers the full effect of virtual reality.
Spencer previously said: "I actually think the upgrade to Scorpio in terms of visual fidelity will feel as dramatic of a change as we're used to seeing in new generations."
The Project Scorpio console is expected to be released mid-2017 and all existing Xbox One accessories will work on Scorpio consoles in addition to games.