Ever since Microsoft announced the Xbox One S, its smaller, more capable console for this year, there has been a lot of confusion over what it will be capable in a home cinema sense.

We had mentioned that it would support 4K Ultra HD Blu-rays in our round-up feature, but out at E3 there was still talk that it would only have 4K output for streaming services, such as Netflix and Amazon Video,

Pocket-lint can confirm that it does indeed have a 4K Blu-ray optical disc drive built-in. We can also confirm that it upscales conventional video and gaming outputs to 4K if you have an Ultra HD television.

READ: Xbox One S: Release date, specs and everything you need to know

It also offers HDR support across the board, for 4K Blu-rays and games that support the high contrast and wider colour gamut afforded by the image tech.

In essence, this information means that, as well as a better version of the Xbox One, starting at $299 (£212) means the new machine undercuts existing 4K Ultra HD Blu-ray players on the market significantly.

Some have been wondering whether, with Project Scorpio also announced for next year, people will invest in an Xbox One S this. In its 4K Blu-ray capabilities, we think we have the answer.