Microsoft has given the world the first look at its new game console, the Xbox One. Microsoft hopes it will attract existing video game fans while also becoming a hub for living room entertainment.

The console was demonstrated Tuesday at Microsoft's Redmond, Washington, headquarters. It will have 8 gigabytes of memory, with an updated controller and new-generation Kinect sensor that communicates a user's voice and gesture commands to the console.

Microsoft's president of interactive entertainment business, Don Mattrick, said the company has spent the past four years working on the "all-in-one home entertainment system." The console will go on sale later this year.

It will chiefly compete with Nintendo's new Wii U and Sony's forthcoming PlayStation 4 for a bigger slice of the 65 billion-dollar-a-year computer game market. But Microsoft also sees it as a broader strategic piece in the battle with Apple, Google and others to control consumer entertainment in the age of tablets and smartphones.