And unlike its competitor, Microsoft actually showed off its console, allowing us to get an up close and personal look at the new device.
Let's take a gander at the Xbox One console, its new Kinect motion sensor, and the redesigned Xbox One controller, a tweaked version of the gamepad that Xbox 360 players have been using for the past seven years.
Although dubbed as Microsoft's all-in-one console, the Xbox One will come in three major pieces: the console, the new Kinect senor bar and the redesigned controller.
The first photos of the Xbox One confirm that the system design will put the "box" in Xbox, even more so than the concave "breathing in" Xbox 360.
All of the Xbox One photos simply label the system as "Xbox"; however, the surprise name of Microsoft's new console is indeed Xbox One, trumping theorized names like Xbox 720, Xbox Infinity, Xbox Loop and new Xbox.
The Xbox One Kinect will come with the system instead of being an accessory. This should encourage developers to make games that use the motion sensor because the entire Xbox One audience will have one - not just a fraction of the console owners, as was the case with Xbox 360.
A new Kinect, which will accompany every new Xbox One console, sports a refined design that makes it look less like a toy. Going with that theme, Microsoft said that this Kinect 2.0 device will be able to process an amazing 2GB of data per second.
The result of that 2GB of data-per-second processing is the ability to detect more joints or the slight rotation of a wrist or shoulder. It'll also know when you adjust your body weight and be able to read your heartbeat.
The new Xbox Kinect will be 1080p, an upgrade over the original's VGA camera. Microsoft calls this new camera "human control for a human experience."
In addition to "revolutionizing" the Kinect, Microsoft tweaked its now seven-year-old game pad design with the new Xbox One controller.
The Xbox One controller analog triggers and face buttons look the same, but Microsoft claims that it made 40 design innovations to the new controller.
On the front, Microsoft redesigned the D-Pad for more immerse gaming and added new dynamic impulse triggers.
On the back, say goodbye to disposable batteries. The Xbox One controller will boast an integrated battery compartment that won't bulge the backside of the game pad.
A photo from behind the Xbox One console, shows all of the ports that gamers can expect from the new Microsoft system.
Upon closer inspection, the Xbox One rear shows both HDMI in and HDMI out ports, confirming that Microsoft will be able to control a cable TV box for live television viewing.
Gone in the Xbox One is Microsoft's reliance on the old disc-loading tray technology. The new system features a slot-loading of game and movie discs.
The Xbox One design is a little boxy, like an 1980s VCR, but Microsoft was able to clean up the front side of the system, reserving the USB ports for the front of sides of the system.
Another USB port is tucked away on the side of the system, which should make it easily accessible in your home entertainment system.
The Xbox One is heading out globally later this year but we're hoping to see more of it at E3 2013.