In addition, the Xbox 360 uses a universal remote control capable of communicating with Windows XP Media Center Edition computers. The Xbox 360 is expected to be able to output 1080p video with a firmware upgrade.
Sony's PS3, which is set to hit store shelves in Japan and North America in November, will be equipped with a competing Blu-ray optical disc player.
Nintendo plans to offer its new game console, the Wii, in November in the United States, setting the stage for a three-way showdown in the nearly $30 billion video game market.
Microsoft said 110 game titles will become available for Xbox 360 in Japan by the end of the year. That is up from its previous target in April of 80 titles.