Microsoft on Wednesday gave British journalists their first chance to play with its forthcoming games console, the Xbox 360, which will be launched all across Europe on December 2.

The machine, a stylish off-white box, is the successor to Microsoft’s current Xbox, the biggest competitor to Sony’s dominant PlayStation 2 in the home games console market.

By launching before the end of the year, in time for the Christmas rush, Microsoft is apparently hoping to steal a march on its rival, whose PlayStation 3 is unlikely to hit shelves before spring 2006.

In terms of technical specifications, Microsoft’s new machine is impressive. At its heart is a liquid-cooled IBM processor, which delivers super-smooth graphics of almost cinema quality. On show were three of the 12 titles that Microsoft is aiming to bring to the market at launch time, Project Gotham Racing 3, Kameo, and Perfect Dark: Zero, a Blade Runner-influenced first person shooter, complete with the requisite misty visuals.

The new machine will ship in two versions. The base model will retail at £209.99, while £279.99 buys a model with a built-in 20GB hard drive, wireless game controllers and – for a limited time – a free remote to control the console’s DVD playback capability.

The Xbox 360 can also serve as a "digital hub". It features three USB ports, which allows it to connect to digital devices such as cameras, MP3 players (including Apple’s iPod) and computers using the Microsoft Windows XP or Media Edition operating system. Content from such devices can then be accessed and played through your TV set.

A Microsoft spokesman acknowledged that, initially, demand is likely to outstrip supply, which could leave parents facing a repeat of last year’s PlayStation 2 Christmas fiasco, when a shortage of the £120 consoles led to them fetching £500 or more on eBay.

Microsoft also refused to comment on the console’s backward compatibility – its ability to play games designed for the existing Xbox console. It seems likely that many of the games available today will play on the 360, and Microsoft will issue comprehensive compatibility information closer to launch time, the spokesman said.

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