The town was glowing with green lighting around the waterfront launch, which featured a tall rectangular cuboid structure in the lake, matching the appearance of the new console.
The show was projected onto the structure.
Professional gamers from Australia and New Zealand , some with social media followings in the millions, appeared virtually at the launch including Australian Elliott Watkins AKA Muselk, and Kiwi Lorien Gugich AKA LoriiPops.
Gugich gave a virtual tour of Greenstown.
Director of Programming for Xbox Live Larry Hryb, who appeared on screen at the launch, said many at Xbox were sad they could not be there in person.
"You're the very first country on planet Earth to get your hands on Xbox Series X and S."
They previewed upcoming games for the console, including Assassin's Creed: Valhalla and Gears 5.
A Microsoft Acumen Team spokesman said last week on behalf of the parent company of Xbox that Queenstown was the only place ''in the world that matches the visual fidelity of the next generation of Xbox consoles''.
He said this was ideal because New Zealand would hit the launch date of November 10 for the Xbox Series X and Series S before nearly anywhere else in the world.
Xbox lead for Australia and New Zealand Dan Johnson said he wanted to celebrate the new consoles in style, by inviting Kiwis to watch ''the adventure capital of the world'' become Greenstown on their screens at home.