It looks great, with great design and slick animation, although similarities to Nintendo's rival Wii system are obvious.
The new experience uses avatars, and i think it is far easier and more fun.
However, it does feel a little limited, although Microsoft say new games taking advantage of the avatar system will change this.
But for now, it's more of an evolution that the new way of playing games Microsoft had promised.
The 'virtual world' is similar to Nintendo's Mii system 'Things like Second Life on the PC have made people really aware of virtual characters and worlds, and we wanted to use that for our console.'However, experts say the company may find it hard to compete with Nintendo and Sony.
'Microsoft was traditionally about hardcore games,' said Luke Peters of gadget magazine T3.