Microsoft's new Xbox: What to expect, where to watch

Microsoft is widely expected to unveil its next-generation Xbox Tuesday. The tech giant invited the press to an event in Redmond, Wash. to see "a new generation revealed."

Microsoft's new video game console is expected to feature better hardware, more storage and deeper media integration.

"There is no question it will have a big hard drive, a DVD/Blu-ray drive, a fast processor, and tons of memory," Wedbush Securities analyst Michael Pachter told CNET. "Microsoft has all the network support it needs to ensure a stellar multiplayer experience. What's left is software, non-game functions, and form factor."

Rumors surrounding the new console include the addition of Kinect technology, ability to make Skype calls and the addition of SmartGlass -- an app turns smartphones and tablets into a second screen. Fans can also expect the same media streaming already available on Xbox Live.

There has been speculation that Microsoft would require users to always be connected to the Internet, but Ars Technica reported that those rumors were not true.

The new Xbox may cost $499 or $299 with a two-year Xbox Live Gold subscription, CNET reports. According to the blog Digitimes, Microsoft's suppliers are already shipping parts for the next console. We'll find out the details soon enough.

GameSpot will stream the event and CNET will have live analysis at 9 a.m. PT.