Microsoft gave the world the first look at its new games console on Tuesday (May 21), hoping the newly named Xbox One will build on a solid core of gamer fans and become a hub for living room entertainment.

The third-generation Microsoft console, coming eight years after the Xbox 360, was unveiled by games unit chief Don Mattrick at an event at the software company's campus near Seattle.

The Xbox One is an "ultimate all-in-one entertainment system," Mattrick said.

The new device interacts with a user's television, responds to voice and gesture commands, and includes Skype video calling.

Yusuf Mehdi, senior VP of Microsoft's Interactive Entertainment Business, showed off some of the hands free features of the new device.

"What if a single device could provide all of your entertainment and what if that device could turn on your TV and talk to all of your devices in your living room. What if it was always ready and connected? Well now, it's all going to begin with two simple words: Xbox on," said Mehdi to cheers from the audience.

The console will have 8 gigabytes of memory, with an updated controller and new-generation Kinect sensor that communicates a user's voice and gesture commands to the console. The technology is built on the Xbox operating system and the kernel of Windows software to handle Internet-based content.

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

Almost as important as the hardware changes are the updates and improvements to the content accessible. Steven Spielberg made a taped appearance at the event announcing his involvement in a live action TV series based on the Halo game franchise which will air exclusively on Xbox.

Mattrick wrapped up the event saying the planned roll out of the new console will come later this year and popular Activision game Call of Duty will release the new downloadable content exclusively on Xbox One.

Presented by Adam Justice