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During the announcement, Microsoft revealed that the new model of the Xbox would be smaller, sleeker, and quieter than the older S model. Microsoft also announced that the Xbox E would be available for purchase on the day it was announced in the United States, UK, Canada and Australia, with the console being released very soon in other territories.

Microsoft stated that new games would be added every month to both the Xbox and Xbox One. Despite being a new model, the Xbox E doesn't really have many new features compared to the Xbox S. When the console was announced, Microsoft stated that it would run quieter and cooler compared to the original Xbox and the slimmer redesign, the Xbox S.

The console is slightly smaller than its predecessor the Xbox S. The Xbox E has also been completely redesigned on the outside to match its successor, the Xbox One. Another major difference is the absence of multi-AV out port.

Microsoft has also removed some of the versatile connection interfaces that were present on the Xbox S. This includes the dedicated optical audio-out found on earlier Xbox models. This means that in total the E only has 4 USB ports compared to 5 on older models. The touch power and eject buttons from the S have also been replaced with more-traditional physical buttons.