Microsoft has announced what few Xbox gamers dared dream about: the rumoured Project Scorpio, an Xbox console capable of "true 4K gaming" and "VR without compromise".
The announcement follows PlayStation's confirmation that it is working on a more powerful version of the PlayStation, codenamed Neo.
However, Xbox's announcement contained many more details, including a release window: holiday 2017.
"When it ships next year we believe it will be the most powerful console ever built," said head of Xbox Phil Spencer. "[This represents] a serious inflection point for Xbox."
Microsoft is promising Scorpio will deliver "true 4K visuals without sacrificing quality" and "VR without sacrificing performance".
All Xbox One accessories will work with Scorpio, and all games will run on Xbox One, Scorpio, and the slim model Xbox One S.
"No-one gets left behind," said Spencer.
Customisable controllers with multi-coloured options were also revealed.
At release, Scorpio will feature what Microsoft believes to be the most powerful GPU ever in a console - eight cores pushing 6 teraflops of GPU power. That makes Scorpio four times more powerful than the Xbox One. It has a memory bandwidth of 320 GB/s.
The company also hinted that it will aim for 60 frames per second where possible.
The just-announced Fallout 4 VR will run on Scorpio.