NBC News brings us the details on the new system:
The system specs? There's 8GB RAM, an 8-core CPU, a 500GB hard drive, a Blu-ray drive, both HDMI in and out and a USB 3.0 port.
The redesigned Kinect has a 1080p camera, and an overhauled system that can track more of your body's movements.
The new controller has an integrated battery compartment, integrated Wi-Fi, impulse triggers and a new "precision" directional pad.
Before they got into the nuts and bolts, Yusuf Mehdi demonstrated some entertainment features, including "switching" which lets you connect to cable, then shift between live TV, games, movies and music, all using voice command.
There's interactive layering of data over TV programming, so when you're watching a basketball game on ESPN, you can pull up your fantasy league right on the screen. There's an interactive guide for live TV, which is fully voice controllable. Skype is also a key item in the non-gaming feature set.