Microsoft unveils Xbox One

Microsoft's new gaming console took a total of four years to develop.

The New Xbox One console by Microsoft was launched on 21 May 2013. Picture: AFP

WASHINGTON - Microsoft Corp unveiled the Xbox One on Tuesday, its new gaming console in eight years, and its strongest push so far to dominate consumers' living rooms with an array of exclusive media content.

The Xbox One took four years to develop and will be the LaunchPad for a Halo live-action video series produced by Steven Spielberg.

It will be sold worldwide later this year, games unit chief Don Mattrick told reporters at an event at the software company's campus near Seattle, without providing details on timing or pricing.

The device will also be the first platform to release the next installment in Activision Blizzard Inc's blockbuster shooter franchise, Call of Duty.

Microsoft hopes its third-generation Xbox console will attract video game fans who are increasingly sampling games on mobile devices, while also becoming a hub for living room entertainment.

The new device interacts with a television, responds to voice and gesture commands, includes group video calling on Skype, 15 exclusive game titles and original programming content.

The Xbox One will chiefly compete with Nintendo Co's new Wii U and Sony Corp's forthcoming PlayStation 4 for a bigger slice of the $65 billion-a-year computer game market.

Microsoft did not refer to the new gadget as a console but rather an entertainment system, signaling its renewed focus on making the Xbox a sort of window for media and entertainment content, said Forrester Research's James McQuivey.

The software giant is "trying to break out of the category" and risks having to battle not just Sony and Nintendo but Apple Inc, Google Inc and others to control consumer entertainment in the age of Smart TVs, tablets and smartphones, he said.

Acclaimed movie maker Steven Spielberg will be executive-producing a television series based on Microsoft's blockbuster sci-fi game Halo, one of the game industry's largest franchises by revenue for the Xbox One.

The new console will also offer exclusive National Football League content and eight new game franchises, executives said.

Console gaming still accounts for the largest share, of about 42 percent, of the $65 billion world gaming market, according to Microsoft. But playing games on smartphones and tablets is gaining ground.

Microsoft said it will have an updated SmartGlass app that connects the Xbox One to tablets and smartphones.