E3 Update: Xbox One is for gaming after all. Right, Microsoft?

Microsoft Corp.’s annual Electronic Entertainment Expo (E3) answered everyone who was wondering if its latest models of video game consoles are still for gaming.

On the eve of its press briefing, Microsoft unveiled that its consumers can now watch YouTube video clips and Netflix movies as well as play and listen to Internet radio. Nevertheless, it reassures its consumers that these new consoles are still about gaming, which it has always been.

"We are committed to delivering amazing experiences that will help define this generation of games and delight the millions of passionate Xbox fans around the world," Xbox head Phil Spencer says in a blog post on June 9.

Spencer took the stage at the E3 conference showing everyone where Xbox One’s platform is leading, through a 90-minute presentation.

The company presented a game line-up from the world’s greatest creators, noting of a quintessential collection from the most-loved game in its history, the "Halo: The Master Chief Collection," and other titles such as the "Fable Legends," "Sunset Overdrive," "Dance Central Spotlight," "Forza Horizon 2," "Assassin’s Creed Unity," "Rise of the Tomb Raider," "Call of Duty: Advanced Warfare," "Evolve" and "Inside."

Microsoft also revealed that gamers have the choice to purchase the all-new Xbox One option for $399, although the Xbox One with Kinect will continue to sell.

"Today we’re thrilled to offer our fans more choices to play the games they love and to enjoy all of their entertainment with the new Xbox One option for $399,"says Yusuf Mehdi, who is corporate vice president at Microsoft’s Devices and Studios.

"With an amazing lineup of exclusive games this holiday and more than 225 entertainment apps available around the world by this holiday, powered by our Xbox Live multiplayer service, we’re committed to making Xbox an incredible place to play," Mehdi also reassures.

Recall that Microsoft was marketing the Xbox One sometime in 2013 as more than a console but an all-in-one entertainment system for one’s living room, allowing its users the ability to shift from gaming to watching TV.

Market analysts think the sudden shift of focus back to a complete gaming experience is Microsoft’s reaction to the success of its primary competitor in the game console business, Sony.

"They’re back on message," Wedbush Securities analyst Michael Pachter said.

While both consoles of the competing companies came out in November, the PlayStation 4 of Sony was reported to have taken the lead since the release of products. Sony reveals last month that it sold over seven million PlayStation 4 devices, while Microsoft only sold over five million of Xbox One units.

The determined Spencer, however, isn’t about to allow Sony to take a lead in the gaming consoles industry, according to the New York Times interview.

A graduate of the University of Washington, Microsoft CEO Satya Nadella promoted Spencer three months ago, but before becoming head of Xbox, he was head of the internal game studios at the company, producing game franchises such as "Forza" and "Halo."

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