It's been a dream for Microsoft since 2001: create an entertainment device that dominates the living room. Although they moved one step closer in this conquest with the Xbox 360, it appears the Xbox One might put them over the top.
The company revealed several nifty features for its Xbox One during an event at its headquarters in Redmond, Wash. Users will be able to navigate and watch live TV, make video phone calls with Skype, flip between apps quickly using the clever Snap feature and even turn the device on with only your voice.
"Being able to integrate custom applications, social communication overlays, and an overall sense of providing a personal experience as a huge win for Microsoft," says Jesse Divnich, analyst with Electronic Entertainment Design and Research, in a statement.
The hardware appears powerful: a 500 GB hard drive, eight-core, x86 processor, HDMI, three USB 3.0 ports and a Blu-ray player.
As a home entertainment device, Xbox One sounds impressive. As a video game console, it's too early to tell.
The Xbox One's new gaming focus features are intriguing: Smart Match that lets players enjoy other activities while waiting for a new match and Game DVR for recording game sessions.
As for actual titles, it's tough to get excited right now. More titles in the longstanding racing series Forza Motorsport and first-person shooter Call of Duty await. Most video game players are well aware of what to expect from those franchises.
The suite of EA Sports games look gorgeous, but if history is any indication, don't expect the robust selection of in-game features that fans of titles such as Madden NFL have seen in current games.
Most interesting is the original series Quantum Break, from the developers of the strong interactive mystery Alan Wake for the Xbox 360. Also, Microsoft will likely reveal more about its games selection at next month's Electronic Entertainment Expo in Los Angeles, so it's likely the company has more fascinating Xbox One titles to showcase.



                                                    Microsoft's new Xbox One console boasts seamless multi-media with multiple platforms.

But there are two more glaring concerns about Xbox One. First, how will this device handle used games? Microsoft has confirmed the device is designed so players can trade in and resell their titles at retail. Then there's this comment from Xbox Live programming manager Larry Hryb:
"Should you choose to play your game at your friend's house, there is no fee to play that game while you are signed in to your profile."
So, what if my friend decides to borrow my game and play on his or her profile? Do they pay a small fee, as this Wired piece suggests, to play the game? Microsoft says they haven't confirmed "specific scenarios" tied to used games.
Then there's the issue of backward compatibility. As this Xbox One FAQ says, it won't play Xbox 360 titles. And, as that Wired piece suggests, it applies to digital downloads, too.
"We designed Xbox One to play an entirely new generation of games — games that are architected to take full advantage of state-of-the-art processors and the infinite power of the cloud," reads the FAQ.
Despite the fears, the battle between PlayStation 4 and Xbox One injects some much-needed life into the video game industry, not to mention excitement players have been craving for a long time.
"The next generation of console gaming has arrived," says Electronic Arts chief operating officer Peter Moore in a blog post. "Our greatest stage for interactive entertainment has just been reset."