Seattle – Microsoft is to unveil the next iteration of its Xbox video game console on May 21.

The company sent out invitations Thursday to technology journalists in the US inviting them to company headquarters on that day for a ”special unveiling” by the Xbox team.

According to Microsoft, the system will ”mark the beginning of a new generation of games, TV and entertainment.” It also said it would show off a few new titles at the Electronic Entertainment Expo (E3) in June.

Microsoft released the current console, the Xbox 360, seven years ago, and it has since overtaken both the Sony Playstation 3 and the Nintendo Wii to become the world’s best-selling video game machine.

However the industry is facing significant challenges from the spread of casual gaming on smartphones and tablet computers, while the rise of smart TV devices will also challenge the aspirations of video console companies for their machines to act as the digital household hub. (dpa)