The day has finally arrived - after all the speculation, Microsoft has lifted the veil off the new Xbox.
It's called the Xbox One and it's Microsoft's effort to put the user at the center of the entertainment experience. Unlike the PS4 reveal, we actually got a look at the console during today's Redmond, Wash. event.
"Team Xbox is on a new mission," said Microsoft's Marc Whitten, "to create an all-in-one system to light up a new generation of games, TV and entertainment.
"It puts you at the center. It's simple, instant and complete."
The console features live TV viewing and interactive apps, and universal gestures like "grab" are designed to help users zip through their system in an all new way.
Xbox One specs
The Xbox One has 5 billion transistors, 8GB of RAM, eight-core CPU and a 64-bit architecture. USB 3.0, a Blu-ray drive, 802.11n wireless, and an in-house designed 500 GB HDD are also part of the Xbox One package, plus (breath) HDMI in and out ports.
There's a single 40-nanometer chip with both the CPU and GPU inside, built by AMD. AMD actually did much more: The system on a chip is a custom made piece of silicon also housing the memory, controller logic, DRAM and audio processors.
"AMD is our primary partner for the custom silicon that makes up our GPU/CPU SoC that is the heart of Xbox One," an Xbox spokesperson told us.
The device is loaded with a new architecture called Xbox One architecture, essentially a three-in-one approach to the system. There's also a kernel of Windows inside, Microsoft noted. If anything, the UI is very Windows 8 like - tiles are prominently spackled with the various options to choose from.
Nvidia followed up the initial announcement with news that it will support the Xbox One with its PhysX and APEX SDKs.
What's more, Microsoft has created a new Kinect sensor, and is updating Xbox Live to match the One's capability. This year, the company plans to up its Live servers to 300,000 - a jump from the current 15,000 operating now. Microsoft is also introducing a DVR for games and media with Xbox Live, meaning users can record game play, play back, and edit in the cloud.
Achievements are receiving some expansion love, while Microsoft will bring Skype to the Xbox One for group calls.
There's naturally a new controller with 40 design changes heading to living rooms, as well.
The Xbox One is heading out globally later this year, but there's more to look forward to at E3.