The battle for the hearts and wallets of video gamers intensified this week with the launch of Microsoft's Xbox 360 console. It signals the start of what is likely to be a lengthy fight between Sony and Microsoft for control over how we consume other digital media such as music and video.

The Xbox 360 and Sony's new PlayStation 3 (due in November) games consoles both serve as entertainment hubs in lounge rooms, broadening their abilities beyond games to include home entertainment features.

The hype surrounding the 360's debut has been building, with Microsoft dubbing it "the biggest console launch in the history of the Australian market". But consumers face a difficult decision: whether to buy now or wait for rival next-generation systems from Sony and Nintendo. A fully featured Xbox 360 costs $649.95 and the games are up to $120 each.

Microsoft received the praise and devotion of many joypad jockeys with its first games system, selling more than 22 million Xbox consoles worldwide since 2001. The company also lost more than $2 billion trying to establish a foothold in the industry and compete with market leader Sony, which has sold more than 200 million PlayStation-branded consoles in the past decade.

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