Xbox's bid for the living room

From the gladiator characters to the zombies featured in its games, Microsoft pulled out the stops for the splashy New York debut of the Xbox One.

The console will battle Sony's juiced up PlayStation 4, which launched 7 days earlier and undercut Xbox by $100.

Analysts say the new hardware from the industry titans could revive the sector's declining sales.

It's been eight years since the last Xbox, and gamer Hanoi Delosangeles waited 36 hours in line to be first to buy it.

He said, "I was tired but it was worth the wait. You had to sacrifice a little bit. But it was worth it."

Both consoles are faster and more powerful than their predecessors, and they allow users to stream videos, watch sports and share gameplay experiences via social media.

But Microsoft is marketing Xbox as the central entertainment hub in living rooms, while Sony is focusing on the gaming aspect.

BMO senior analyst Edward Williams says the $499 Xbox won't become the hub. "I don't see it playing well in households that don't have a gamer in it."

Here at this GameStop store in New York City, the manager says first day store traffic was similar for both the new Xbox and Playstation. But several polls show buyers prefer the PlayStation. Sony sold one million PS 4s in North America on day one.

Williams says PS4 has the edge in the short run, partly because it doesn't include the Xbox's Kinect motion sensor that does away with controllers.

The Managing Director of BMO Capital Markets said, "Conversations I've had with gamers is that they don't want Kinect. They don't want to be forced to pay more for the Kinect camera. They also point out to me that PS 4 is a more powerful box, so it's $100 cheaper and more powerful."

Good luck if you want one. He predicts both consoles will be mostly sold out through the end of the