Software giant Microsoft unveiled the latest version of its gaming console, Xbox One, the other day eight years after the release of Xbox 360.

After eight years since the launch of Xbox 360, Microsoft revealed specs and features for the Xbox One the other day at an event in Redmond, Wash.

The new gaming system, which it plans to release before the end of the year, is chock full of new features that go way beyond new hardware, including Skype connectivity, television integration and new ways of controlling the system with your voice and body.

"We have an ambitious vision to become the all-in-one system for every living room," Microsoft president of Interactive Entertainment Business Don Mattrick said at the Xbox event in Redmond, Wash., this afternoon. Highlighting that the Xbox is not just a gaming system anymore, Mattrick added: "We're thrilled to unveil the ultimate all-in-one entertainment system: the Xbox One."

However, Microsoft will face stiff competition with the release of Playstation 4. Sony's upcoming next generation console is scheduled for release the holiday season of 2013.

Below are the five reasons why gamers should buy the new Xbox One.

Home Entertainment Hub - The new Xbox will be more than just a gaming console but a centrepiece of one's entertainment area. There have been a number of reports claiming that the next Xbox will come with an integrated Blu-ray player that will delight movie junkies.

No 24/7 Internet Needed - Good news for gamers as the Xbox One no longer requires a constant Internet connection.

Motion Control - Xbox will have a new Microsoft-developed Kinect camera, with 250,000-pixel infrared depth sensor and 1080p camera.

Optical Drive - The console will include Blu-ray/DVD combo drive. At first, it was reported that Microsoft will have problems supporting or including Blu-ray technology in the console due to a patent that its rival Sony is holding on the technology.

Controller - The new Xbox Xbox One has a controller with redesigned directional pad. Xbox's popular handheld controller is not undergoing a major design overhaul, but there are several tweaks that will help it interact with Kinect via Wi-Fi Direct, keeping track of where you are playing in the room and how you are moving your controller around.