Microsoft has unveiled the next console in their Xbox family, Project Scarlett, a console that is set to use the power of the Cloud, and due for release in Holiday 2020.

Presented by Phil Spencer at this year’s Microsoft E3 Press Conference, the next hardware features power that is four times more powerful than the Xbox One X, Ray-tracing, variable frame-rates, and an SSD, placing it as Microsoft’s most powerful console to date.

The system will be capable of playing games in 8K at 120 frames per second, with support for games on all previous Xbox consoles, ensuring full backwards compatibility. It’s set to take advantage of an SSD to improve load times and make the aimed power of 8K at 120 fps possible. Microsoft also confirmed that Halo Infinite would be a launch title for the new console.

The presentation didn’t show the model of the console or the controller, but it seems to be at an early stage currently.

It follows details of Sony’s upcoming PS5, including information from an interview with Mark Cerny for WIRED, and one with Playstation CEO Jim Ryan for CNET. The only concrete hardware power information on the new PlayStation is that it will feature a custom-made 2nd Generation Ryzen processor, similar to Microsoft’s announcement today.

The new hardware had not been hinted at before this E3, but with the current console generation closing in on six years, its development has been anticipated throughout the industry, though no-one quite knew when Microsoft would officially announce it.