Don Mattrick, president of Microsoft's interactive entertainment business, said the company wanted to design and build the "ultimate all-in-one home entertainment system."
The Xbox One will be available around the world later this year.
The Xbox One includes games, TV, movies, music, the Web, and apps. It has Skype and live TV capabilities, as well as voice recognition to switch between programs, new gesture recognition, and the ability to operate multiple programs at the same time. And users make group video calls via Skype, said Yusuf Mehdi, corporate vice president of marketing, strategy, and business for Microsoft's interactive entertainment business.
The new Xbox home screen identifies users and logs them in with all their favorite apps and games. It remembers what they were doing the last time they played, and those actions show up on the home screen. A new "trending tab" shows users what's popular with friends and the overall community.
The all-new Xbox One
Microsoft, which is hosting its special next-generation Xbox event at its Redmond, Wash., headquarters, last introduced a new gaming console, the Xbox 360, in 2005. Since that time, the Xbox has become the best-selling game console in the country. In April alone, consumers spent $208 million on hardware, software, and accessories for the Xbox.
However, the new Xbox launch comes as the game console business faces an uncertain future. More and more people are turning to mobile devices and the Web for gaming, which has resulted in weaker console sales. The Nintendo Wii U, which includes a tablet-like game controller that doubles as a second screen, has faced tepid interest since launching late last year. Sony, meanwhile, unveiled its Playstation 4 in February, but the device isn't expected to hit the market until the fall.
This story is being updated as events unfold in real time. See our live blog for ongoing coverage, including video.