Microsoft has big news even before the upcoming E3, announcing a new Xbox One with 1TB of storage and a permanent price cut for the 500GB model.

The existing version of the Xbox One console with 500GB of storage is now available for $349 after the permanent price cut. The new version of the Xbox One, meanwhile, packs a 1TB hard drive and comes with a new wireless controller with built-in stereo jack, retailing for $399.

The Xbox One console with 1TB of storage will start shipping to retailers on June 16 in the U.S., with "select markets" set to follow later this month.

Moreover, the new console will also bundle Halo: The Master Chief Collection for a limited time.

According to Microsoft, one of the most frequent and persistent requests it received from fans ever since launching the Xbox One was to add more storage. The new console with 1TB of storage aims to give fans what they want, proving that Microsoft listens to customer feedback.

"Only Xbox offers the most choice when it comes to storage options, now with increased on-board storage as well as the capability to extend game storage by adding an external USB 3.0 drive," Microsoft boasts in the announcement on Tuesday, June 9.

The new controller, meanwhile, is set to go on sale this month at a $64.99 price point in a black version, and will also ship with future consoles from now on. Interested customers can also purchase an Xbox One Special Edition Covert Forces Wireless Controller in "camouflage" silver and black at the same $64.99 price.

The upgraded Xbox One Wireless Controller allows gamers to adjust the headset volume, mic monitoring, as well as voice and game audio balance via the console's Settings menu. The 3.5mm stereo headset jack enables them to plug in their gaming headset directly into the controller.

Microsoft further notes that it improved the quality of audio that comes through the controller and increased the maximum audio volume on headsets paired with the controller. The updated wireless controller will work with all existing controller accessories.

Aside from audio enhancements, Microsoft also touts fine-tuned bumpers for improved performance along the full surface and length of the bumper. The company also enabled wireless firmware updates on the new wireless controller, which means that users can now receive updates without having to connect the controller via USB.

Microsoft's new announcement also reveals that the Xbox Wireless Adapter for Windows will go on sale "starting this fall" for $24.99, or as part of a special bundle that includes a controller for $79.95.

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