According to reports, the sleek white machine was paraded in front of US viewers in a demonstration that highlighted its high-definition graphics and wireless features. The new model is also designed to be able to play videogames, DVDs and CDs and can connect to the internet.

The MTV setting was an unexpected surprise to Japanese console makers Sony and Nintendo, who are both expected to reveal their own game devices at next week’s E3 games trade show held in Los Angeles. In a further blow, Microsoft is saying it is now ready to release the Xbox 360 before Christmas, while observers are hinting that its rivals are unlikely to launch their own consoles before next year.

It is the latest update in what the media is calling an escalating war between Sony and Microsoft. The first Xbox model was released in the US in November 2001, but was beaten to the shops by Sony’s PlayStation 2, which arrived a year earlier.

The race to dominate a market that analysts predict could be worth $11.3bn in five years’ time is set to gather pace over the coming months.