Microsoft chairman Bill Gates has announced that Microsoft will offer an Xbox 360 that doubles as a set-top box for its fledgling internet television service, or a "living room device that does it all."
The Xbox 360, Sony's PlayStation 3 console and Nintendo's Wii game machine are locked in a battle for leadership in the $30 billion global video game market. Sony and Nintendo came out with their offerings in November, a year after Microsoft introduced the successor to the first Xbox.
Having beaten its target to ship more than 10 million units by the end of the year, Microsoft says Sony, which dominated the last generation of consoles with its PlayStation 2, is the one playing catch-up.
"It's a complete reversal of last time," Mr Gates said in an interview last weekend ahead of his keynote speech at the Consumer Electronics Show in Las Vegas.
"Last time, we tried coming in a year late with a big, clunky box that cost more and having less titles. We tried that and it's not that much fun."
Sony has had an iron grip on the video game console market with its two previous PlayStation models - combined unit sales of which have hit more than 200 million globally - but its launch of the PS3 was beset by delays. - (Reuters)