Thousands of keen gamers queued outside stores to get their hands on Microsoft's Xbox 360 games console as it went on sale in the US at midnight.

Leading games shops across America opened up at midnight for those who had queued during the day.

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

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

Using Xbox live gamers can 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 doubles as a progressive scan DVD player.

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

The core version costs $299.99 and includes console and wired controller.

To coincide with the US launch, eighteen games have been released, 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.

Nintendo and Sony are planning to release their next consoles during 2006, giving US-based Microsoft an edge over its rivals.

Microsoft said it expects to sell 10 million units of the Xbox 360 within 14 months of the launch.

The software giant plans to launch the console in Europe on December 2 and in Japan on December 10.

Gamers in Australia, Colombia, Hong Kong, Korea, Mexico, New Zealand, Singapore and Taiwan will have to wait until early next year to get their hands on this stylish gaming device.