The months of waiting are finally over. Microsoft has revealed its next-generation console, dubbed the Xbox One, at a special event at its Redmond headquarters in the US.
The new console, which takes on the PS4 this Christmas, will pack a stack of features and a strong focus on becoming your digital entertainment hub in the living room, as it looks to fend off challenges not only from Sony and Nintendo, but also Google, Apple and others.
"We are about to change entertainment forever and take all that we've learnt so you and your TV are going to have a relationship," says Microsoft in a trailer filled with popular faces from the world of games and TV.
Using the "power of the cloud" and a host of social features, Microsoft says "we will stop watching and start feeling".
"All of your entertainment will come alive in one place," said Don Mattrick announcing the new console.
The new console will feature a Blu-ray drive, 500GB of storage, 8GB of RAM and USB, Wi-Fi Direct, and HMDI connectivity.
On the software front the new console will add live TV to the experience and be controlled virtually entirely by voice, with users able to switch between gaming, music and TV by giving an instruction.
Bundled in the box, a new Kinect sensor will learn your voice and gestures to better understand you, the gamer, and improve its own capabilities.
"We understand your balance," says Microsoft on the new Kinect sensor.
On the controller front, the new controller gets tweaked with more than 40 changes and better control, says the company. Likewise Smartglass will also get enhanced with a greater focus on including it in games.
The company says the end game for all this is that everything will work seamlessly and "lag free".
Microsoft has also added something called Snap Mode that allows you to run two applications on the screen at one time - say a movie and Skype at the same time.
As well as focusing on voice, Microsoft has added a number of visual commands.
The company has said the new Xbox One console will be available later this year around the world.