Microsoft reveals next-generation Xbox

Microsoft has announced the first details of its next-generation Xbox video game system, highlighting how they are attempting to fuse hardware, software and online services for enhanced game and entertainment experiences.

Microsoft's Corporate Vice President J Allard outlined the company’s vision for the future of entertainment, citing the emergence of an “HD Era” in video games that is being fuelled by consumer demand for experiences that are always connected, personalised and with high-definition graphics.

Allard shared the first details about the next-generation Xbox 'guide'. Persistent across all games and media experiences, the guide is an entertainment gateway that instantly connects players to their games, their friends and their digital media.

Gamer cards let players connect with people who have similar skills, interests and lifestyles. A new Xbox 'marketplace' provides a shop for consumers to buy episodic content, new game levels, maps, weapons, vehicles, skins and new community-created content. Micro-transactions allow developers to charge small amounts for content they create for example players may be able to pay 99 cents to buy a one-of-a-kind custom racing car to impress their online racing buddies.

Custom playlists have also been added to allow players to listen to their own music tracks while playing all their favorite Xbox games.