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According to IGN, Killer Instinct will be released with a sole playable character, Jago. Additional fighters will be available to purchase for yet-be-determined prices.
Last night's Killer Instinct announcement showcased three characters familiar to fans of the franchise: Jago, Sabrewulf and Glacius.
Featuring "robust progression and rewards, dynamic challenges customized to player behavior, and predictive matchmaking for seamless competitive fights", the long-awaited, much-requested sequel is being developed by Double Helix rather than Rare.
Videogamer also reports that world building title Project Spark will be a free-to-play game supported by paid DLC.
According to Microsoft's official announcement, Project Spark "is an open-world digital canvas that enables anyone to build, play and share whatever they can imagine and create in the game.
"It's a powerful, yet simple way to build and play your own worlds, stories and games. Share all of your creations with a dynamic community and play what the community makes. Project Spark brings creation to life and presents endless opportunities for play across Xbox One, Windows 8 and Xbox 360."
Check out the Project Spark gameplay demo from Microsoft's E3 press conference.