Known as the Xbox One, Microsoft say the device will provide an “all-in-one” entertainment experience with games, live TV, movies and music.
The new machine includes a Blu-ray drive, enhanced feedback in the gamepad triggers and upgraded Kinect camera sensor which now supports 1080p high definition resolution.
New games announced for the Xbox One include Fifa 14, Madden 25, NBA Live 14 and the fighting game UFC from EA Sports and Forza Motorsport 5 from Microsoft Studios.
“Xbox One is designed to deliver a whole new generation of blockbuster games, television and entertainment in a powerful, all-in-one device,” said Don Mattrick, president, Interactive Entertainment Business at Microsoft.
“Our unique, modern architecture brings simplicity to the living room and, for the first time ever, the ability to instantly switch across your games and entertainment.”
Microsoft is also collaborating with Steven Spielberg to produce an original Halo live-action television series with exclusive interactive Xbox One content.
The device will go on sale “later this year”, in the UK, entertainment retailer Blockbuster has already opened pre-orders.
The company says customers can pay a £20 deposit in-store or online which will be deducted from the console’s price once it has been announced by Microsoft.