By Sarah E. Needleman

Microsoft Corp. plans to release two gaming consoles this fall, with its less-expensive model, the Xbox Series S, carrying a $299 price tag.

Microsoft confirmed the pricing information in a tweet Tuesday as well as a design of the Xbox Series S, which is smaller than prior models and lacks a game disc drive.

A spokesman for Microsoft declined to comment on when the new consoles would be available for purchase and the price of the Xbox Series X.

The Redmond, Wash., tech giant as well as Sony Corp. have long been working on next-generation consoles after prior versions, the Microsoft Xbox One and Sony PlayStation 4, were released in 2013. Sony, which is expected to release the PlayStation 5 this fall, hasn't announced a price for the machine but is likely to do so soon.

The initial price for Microsoft's Xbox One was $499. The company stopped disclosing console sales data at the end of 2014, but many analysts believe Xbox One sales have trailed those of the PlayStation 4 from the get-go and remain lower today.

Details about the new Sony machine's features were revealed earlier this year and include upgrades in processing power, storage and technologies such as ray tracing, which produces much more realistic images. Sony also said the console will have exclusive games such as "Marvel's Spider-Man: Miles Morales" and "Horizon Forbidden West."

Sony initially released the PlayStation 4 with a $399 price tag. Since its debut, more than 106 million PlayStation 4 units have been sold as of Dec. 31, 2019, according to the company.

--Bowdeya Tweh contributed to this article.

Write to Sarah E. Needleman at sarah.needleman@wsj.com