Microsoft's Project Scorpio is officially called Xbox One X, and it will launch on November 7 for AU$649.

At its E3 press conference this morning, Microsoft announced that the Xbox One X is its most powerful but also its smallest Xbox yet.

It will run games in true 4K resolution – that's 8 million pixels, with HDR and wide colour gamut support – and it will also support Dolby Atmos and 4K Blu-ray playback.

All Xbox One games and accessories are compatible with the One X.

Games not optimised for One X will still benefit from faster load times and anisotropic filtering, Microsoft said.

Those without 4K TVs will still benefit from the One X's horsepower: where possible it will supersample 4K assets down to 1080p.

The One X features a liquid cooled vapour chamber, and a proprietary optimised power management method named after engineer that created it.

Microsoft referred to the upcoming console as "a monster" several times.

Head of Xbox software engineering Kareem Choudry ran through the pillars of the console's development: power, compatibility, and craftsmanship.

As we already knew, it has a six teraflop GPU, 12 GB GDD5 memory (9GB of which is reserved for games), and 326 Gb/s memory bandwidth.

Some games that are already out (including Halo Wars 2, Gears of War 4, and Forza 6) will receive Xbox One X patches so they run in native 4K with all the bells and whistles.

Some already released third-party titles including Final Fantasy XV, Resident Evil 7, Ghost Recon Wildlands, and Rocket League will get the same treatment.

Microsoft referred to these patches as "free" several times, which could be interpreted as a signal that not all patches for One X games will be (however, that could be paranoia on my part).

The company hasn't announced how it is directing developers with respect to Xbox One X patches, so at this stage it's unclear what the criteria will be for patch content, and which games will be patched for Xbox One X support.