The console, known as Project Scarlett, will be the "most powerful and highest-performing console" Microsoft has ever made.
The latest Xbox console will be launched at the end of next year, Microsoft has announced.
The tech firm described the console, known as Project Scarlett, as the "most powerful and highest-performing console" they have ever made.
A new streaming service, Project xCloud, will also be launched in October. It will start with a preview letting players stream games from an Xbox One console to a mobile device.
Details about the new Xbox were given during an event in Los Angeles ahead of the opening of video games convention E3.
The price was not revealed but the Xbox One X launched in November 2017 at a cost of $499 and £449.
Microsoft Xbox head and executive vice-president of gaming Phil Spencer said Project Scarlett and Project xCloud were the "foundation of our future in console and the formation of our future in cloud".
The new console will be four times more powerful than the current generation Xbox One X, he added, and will be released alongside a new game - Halo Infinite.
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