Microsoft recently introduced consumers to their updated gaming console, the Xbox One X, but not without turning heads with the large price tag that experts argue will have consumers opting for other models. The One X offers 4K graphics, faster-loading speeds, more horsepower, a larger memory and several more upgrades. But for $499 gamers may look elsewhere, and reportedly Microsoft is okay with that.

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According to Microsoft’s website, the new model will provide them, “very best experience possible” for gamers as the “world’s most powerful console.” The new home entertainment system will provide users with the ultimate 4K experience to immerse players deeper into their movies and video games. Smoother gaming with an 8 core custom AMD CPU clocking in at 2.3GHz to improve artificial intelligence and create more fluid interactions during gameplay. A 12GB GDDR5 of graphic memory allows for games to open into large worlds and improve loading times. There is also one terabyte of HDD internal memory that allows users to download and store more content than ever before. Even if users haven’t upgraded to a 4K television, users will still be able to experience higher quality gameplay overall.

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All of these improvements have yet to convince gamers it’s worth their investment, and it seems their parent company, Microsoft, is prepared for that possibility. Microsoft currently has several Xbox models in production including the Xbox One S, a more cost friendly model that has been in circulation only since August of 2016. According to Gamespot, Xbox boss Phil Spencer said that the “Xbox One S will [continue to] be the market leader for us.” He went further to mention the cost benefit to casual gamers and that those who opt for the One S will still be able to play all the same games as One X owners. Spencer admits the S, “will be the console that sells.”

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In defense of their upcoming release, Spencer made the comparison between the release of the Xbox Elite Controller and the new Xbox One X. In an interview with GameSpot, he explains that when Xbox introduced their new controller into the marketplace, the company understood that the casual gamer would not have a need to buy the Elite controller. Predictably, casual gamers would opt for the more cost friendly traditional wireless controllers, but this didn’t hurt the market expectations Xbox and Microsoft had for the enhanced controller. Instead, the company predicted that that consumers whose main hobby is gaming, an ever-growing demographic of the consumer population, would most likely buy the Elite controller which would make the venture worthwhile.

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Ultimately the company has said this approach paid off, so they are approaching the release of the Xbox One X the same way. They expect more avid gamers to step up and buy the new console and are not banking on the entire market buying in.

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While Xbox has been competing with Sony’s PlayStation for control of the gaming market for the last few decades, they now compete on a new frontier of home entertainment consoles. However, Microsoft’s new device steps away from home entertainment and instead placed more emphasis on optimizing and improving gamer experience.

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Though Xbox and Microsoft appear confident moving forward with the release in early November, many still believe the holiday release will not meet the company’s expectations with more economically friendly models providing extremely similar experiences for casual users. But with the gaming market averaging over $10 billion annually, there appears to be plenty of real estate for Xbox to drop their new product on.