Fans lined up for hours to pay $499 for the new gaming console. It's the first new Xbox in 8 years.
Microsoft says "the living room is evolving" into a place where people can watch online videos, communicate through Skype and watch TV through their sets. The Xbox One reflects that. It's designed to seamlessly shift from one type of video content to another - including letting you control what you get from your cable or satellite TV provider.
Company spokesman spokeswoman Lisa Worthington says you will also see a big difference in the quality of the video games designed for the XBox One. For example, she says images in a car racing game are so sharp, you can see things like where the tires have been shined up to sun reflecting off the hood.
The system is closely linked with the updated Kinect device, which comes included. It can note when a person walks into the room - and instantly fire up the system so that it's customized for their TV choices, game preferences and other settings.
The Xbox One has nearly two dozen games available for purchase, either at stores or online through the device.