Microsoft has announced that the Xbox One will be getting a new media player that will support almost all media formats, and will add back DLNA support that has been missing on the next-gen console since launch.
Microsoft made the announcement at Gamescom 2014, with the actual update coming in September (or earlier, for those part of the early access preview program).
The new media player will play virtually any media format, and includes rare support for the MKV format, which is not supported by any of the previous generation consoles. MKV is a popular format for video downloads on the Internet, often high quality pirated downloads.
The other major addition is DLNA support, which allows the Xbox One to stream media files from other DLNA compatible devices on the same home network, including Windows PCs and media servers. DLNA support was present on the Xbox 360, but was not included on either of the next-gen consoles from Sony and Microsoft, to the disappointment of potential buyers.
Sony has previously promised that DLNA, and other media functionalities missing from the PS4 (compared to the PS3) will be added back to their flagship console, but has yet to provide a timeline or an estimate to when these features will be available.