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Guitarguy said:
I'm hoping it does. Would make sense for it to. However by not including it it would 1) make the console significantly cheaper to produce/sell and 2) make the Neo even more enticing to enthusiasts. That way there are two distinct products for the market catering to two extremes. All evidence points to no 4k playback but we shall see. Does the Xbox One S have any indications of 4k playback on the console itself??

Not on the front of the box not sure about the back.  But every describiton of it on retail websites mentions that its capable of 4K video steaming and that it has a UHD ray player.