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Microsoft hopes its third-generation console will attract video game fans who are increasingly sampling games on mobile devices, while also becoming a hub for living room entertainment.

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A woman takes pictures of the event tent set up for a press event unveiling Microsoft's new Xbox in Redmond, Washington May 21, 2013.

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It's been eight years since the launch of the Xbox 360. The original Xbox debuted in 2001, and its high-definition successor premiered in 2005.

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Xbox One hardware in exploded view. It features an 8-core GPU, 500 MG spinning hard drive, 8GB of RAM for memory, although it'll be DDR3 and not the PlayStation 4's GDDR5, as well as onboard Blu-ray/DVD player.

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Yusuf Mehdi, senior vice president of Microsoft's Interactive Entertainment Business, discusses the Xbox One’s live television capabilities. The new device interacts with a television, responds to voice and gesture commands, and includes Skype video calling.

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Acclaimed movie maker Steven Spielberg will be creating a premium television series based on Microsoft’s blockbuster sci-fi game “Halo” for the Xbox One, the company said.

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Eric Hirshberg President and Chief Executive Officer of Activision Publishing, discusses "Call of Duty Ghosts" designed for Xbox One during a press event unveiling Microsoft's new Xbox in Redmond, Washington May 21, 2013.

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The new console will offer exclusive National Football League content and eight new game franchises, including the game Madden NFL 25 by EA Sports.

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Don Mattrick, President of the Interactive Entertainment Business at Microsoft. His unit of Microsoft is set to break $10-billion in sales for the first time this year, but that’s half the sales of its Windows unit, and a lot less profitable, averaging less than 15 per cent margin compared to 60 per cent or higher for Windows or Office.

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