Microsoft's next-generation games console, the Xbox 360, goes on sale in the US on Tuesday.

The Xbox 360 builds on the original Xbox that was released in November 2001.

Powered by the IBM Power-PC processor, the console offers wi-fi, surround sound and a parental locking system.

Using Xbox live gamers will be able to send and receive text and voice messages, download demos and trailers along with new game levels, maps and weapons.

In addition to playing games, the new console will double as a progressive scan DVD player.

The Xbox 360 will come in two packages. The premium version will sell for $399.99 and will include the console, wireless controllers, 20GB hard drive, headset and membership to Xbox Live.

The core version will sell for $299.99 and includes console and wired controller.

Microsoft said 18 games will be ready for the US launch, including Quake 4, Resident Evil 5, Tony Hawk's American Wasteland, Need For Speed, Tiger Woods PGA Golf, Elements of Power and Project Gotham Racing.

"The debut of Xbox 360 marks one of the biggest consumer launches in Microsoft's history," said Robbie Bach, chief Xbox officer for Microsoft.

"With its sheer power, portfolio of graphically stunning games, rich online capabilities, and features for enjoying music, movies and photos, Xbox 360 delivers integrated digital gaming and entertainment experiences that simply can't be matched."

The excitement is already being felt around the globe. More than 3,500 gamers from around the world descended on an Xbox 360 oasis in California's Mojave Desert on Sunday night to celebrate the arrival of Xbox 360 at an exclusive launch party called Xbox 360: Zero Hour.

Once launched in the US, the Xbox 360 is due to be in stores in Japan and Europe in early December.

Microsoft said it expects to sell 10 million units of the Xbox 360 within 12 to 16 months of the launch.

The Xbox 360 is Microsoft's answer to Sony's PlayStation 3 and Nintendo's Revolution. Sony said it plans to launch its PlayStation 3 in spring 2006. No release date has been announced for the Revolution.