Sony held a press conference in February when it revealed details about its upcoming PlayStation 4, while Nintendo launched its next-generation console, the Wii U, last year.
Both Microsoft and Sony plan follow-up "keynote" announcements at the E3 trade show in Los Angeles on June 10.
Among the new features on Xbox One are "snap mode" which allows users to run two programmes at once, while "trending" allows users to see which games and television shows are popular with friends.
The console has eight gigabytes of memory and a 1080p camera for HD Skype calls is built into the new Kinect sensor, Microsoft said.
However the price of the new machine was not announced during the launch event.
Fifa 14, Madden 25, NBA Live 14 and the fighting game UFC would all launch on Xbox One using a new games engine called Ignite which will "blur the line between real and virtual", EA Sports executive vice president Andrew Wilson told the audience.
Alex Simmons, UK editor-in-chief of games website IGN, said Microsoft's plans for an all-in-one entertainment system were "ambitious", with the electronics giant facing competition from new, cheaper games available on tablets and smartphones.
"The Xbox One is Microsoft's big attempt to take its battle to the living room - with ambitious plans to create an interactive layer for all the kinds of entertainment you enjoy through your TV - not just gaming," Mr Simmons said.
"We got to see the minimalist Xbox One console, its controller and the new Kinect motion control system, but gamers will want to know much more about software they can expect later this year.
"This is no longer just a simple fight between Microsoft and Sony for supremacy - it's a battle for relevance against new, cheaper forms of gaming."
A Microsoft spokesman confirmed later that Xbox 360 games cannot be played on Xbox One because of the "different architecture" of the new console.
A spokesman said: "Xbox One hardware is not compatible with Xbox 360 games. We designed Xbox One to play an entirely new generation of games - games that are architected to take full advantage of state-of-the-art processors and the infinite power of the cloud.
"We care very much about the investment you have made in Xbox 360 and will continue to support it with a pipeline of new games and new apps well into the future."
