Microsoft on Tuesday confirmed that it will launch a small Xbox S game console priced at $299 in November.

The US technology firm posted a video and fired off a tweet about the Xbox S after word leaked that the hardware is coming as part of a new-generation console line-up expected late this year.

"Let's make it official," the Xbox team said in a post at its Twitter account."

"Xbox Series S. Next-gen performance in the smallest Xbox ever."

Xbox Series S will launch on November 10 and is designed for an era of game services and software hosted online instead of stored on consoles, according to a promotional video posted online.

Microsoft 's cloud video game service is to debut this month as a feature available to Xbox Game Pass Ultimate subscribers.

Ultimate subscribers, who pay $15 monthly, will be able to access a library of games for play on Xbox consoles or Windows-powered computers.

Microsoft is also poised to release a new-generation Xbox Series X late this year.

Pricing has yet to be announced for the Series X, but US media has cited leaked reports that it will be priced at $500 and also debut in November.

Microsoft has promised the new-generation Xbox for the holiday season next year, when Sony's PlayStation 5 console is also scheduled to come out.

The current PlayStation 4 has outsold Xbox by more than two to one, but Microsoft hopes to take the battle back to Sony.

Consoles face a potential threat from the advent of cloud gaming, however. Google last year launched its Stadia streaming service, allowing game play on any internet-connected device.

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