Microsoft hopes its powerful new Xbox One console will become a hub for living room entertainment.
A transparent computer has been revealed at the TED conference in Los Angeles, which allows users to reach through the screen.
The latest instalment in Microsoft's Halo game series has launched with sales figures expected to top £125 million on Tuesday alone.
Engadget's Darren Murph praised the Xbox One's "retro" aesthetics and Blu-ray capability but criticised the console's inability to play games from earlier models.
"Microsoft's next-generation console is quite an ambitious product, promising to unifying absolutely everything you do in the living room," wrote Hunter Skipworth for pocket-lint.com.
Gizmodo's Kyle Wagner was impressed by the voice-activated channel and input switching.
"This will work via a HDMI pass-through, so this won’t replace your set-top box — rather, it reduces the number of controllers you have to use, and the input switching you have to do on your TV," he wrote.
The Xbox One console will be on sale by the end of 2013, Microsoft announced.
Microsoft announced key specifications for the new Xbox One:
- 8-Core CPU
- 8GB memory
- 500GB hard disk drive
- Blu-ray drive
- Wi-Fi direct
- USB 3.0
- 1080p wide camera
Microsoft demonstrated utilising a partnership with US sports broadcaster ESPN to display sports statistics and background using voice commands through the Xbox One.
Britain's ESPN channel has recently been acquired by BT Sport.
A Microsoft representative demonstrated switching between Internet Explorer, films, live TV, Skype and games using voice commands.
Microsoft has unveiled its latest Xbox games console in a live video on its website.
The new system is called the Xbox One and is designed for use as a social hub and television unit as well as a games console.
It replaces the Xbox 360, which shipped about 76 million consoles by the end of March.
Microsoft has been fined £484m by EU regulators for breaking a promise to offer European consumers a choice of web browser.
A web browser is a computer programme that allows a user to read internet pages.
Microsoft's share of the European browser market has more than halved since 2008 to 24%.
Google's Chrome has a 35% share, followed by Mozilla's Firefox with 29%, according to Web traffic analysis company StatCounter.
Internet Explorer is currently in third place, ahead of Apple's Safari.
The Windows 7 service pack 1, rolled out between mid-2011 and mid-2012, failed to offer consumers a choice of browser, leading to the EU investigation that resulted in today's fine.
Microsoft said the failure was the result of a technical error and that procedures have since been tightened.
In what was seen as an acknowledgement of the severity of the mistake, the board cut the bonus of chief executive Steve Ballmer last year, according to company's annual reports.
EU antitrust regulators fined Microsoft €561m (£484m) today for breaking a promise to offer European consumers a choice of web browser.
Microsoft had made the pledge in 2009 in settling an antitrust investigation in Europe, where the software group's regulatory troubles date from the last decade and have cost it a total of €2.16bn, including the latest fine.
Microsoft promised to offer European consumers a choice of rival browsers in the previous version of its Windows operating system.
But the European Commission, which acts as competition regulator across the 27-member European Union, said it found the company broke that undertaking between May 2011 and July 2012.