Microsoft’s launch of the Xbox One now fully kicks off the next-generation gaming battle for the living room, as it wars with Sony’s PlayStation 4 for consumers’ attention and their hard-earned dollars.

We’ve already looked at what the PlayStation 4 has to offer, but now that the Xbox One is in the limelight, what does it offer out of the box that measures up or differs in what Sony brought to the table? And of equal importance, what does the console offer or keep away from Canadians, specifically?

On the surface, the Xbox One isn’t going to win any awards for design. It’s a bit of a hulking box that doesn’t project an image of grace or prestige, and is noticeably larger than the PS4, despite the fact Microsoft designed the One to have the power brick outside the chassis. The Kinect camera is bundled with the One, but connecting it to the console isn’t a requirement, unless you want to use the camera and voice control features that are so integral to the mishmash of gaming and non-gaming features inherent in the console’s hardware and user interface.

The controller bears a real resemblance to the Xbox 360 controller, though feels a little bit bigger by comparison. Unlike the PS4 controller, which has a rechargeable battery, touchpad, internal speaker and motion-sensored controls, the Xbox One model has none of the above. You can buy a separate rechargeable battery accessory, otherwise two AA alkaline batteries will suffice (a pair come included with the console). There is a port for plugging in a wired headset, though that was something already built-in to the Xbox 360 controller.

For the games themselves, the One has an edge over the PS4 when it comes to exclusive titles (most third-party games are available for both). Ryse: Son of Rome, Dead Rising 3 and Forza Motorsport 5 combine for a better overall offering than Killzone: Shadow Fall and Knack for the PS4. Generally speaking, neither console can claim the crown for best graphics, as there is little difference in visual quality between the two out of the gate.

Both consoles are also still very much in their infancy when it comes to downloadable arcade games, so the jury is still out on that side of things, too. Like the PS4, the Xbox One offers zero backward compatibility, negating any 360 games from working. The most obvious plan will be to eventually offer them as downloadable or streaming titles in a back catalog, much like was done with the previous generation. When that will actually happen isn’t clear yet, though.

Actually, games are available in the Xbox Store, except accessing whatever is in there will require an Xbox Live subscription. In fact, doing just about anything online with the console will require the $60 annual subscription. This was already the state of affairs with the 360 when it came to playing against others online and accessing premium features, so it shouldn’t come as a great surprise, other than that apps like Netflix are perched behind the paywall.

Skype is tightly integrated into the wider experience, allowing you to chat with someone while playing a game or watching TV (more on that in a bit), but even here, you would need to be a Gold subscriber to make use of it.

The same goes for the apps. There isn’t a great deal available, partly because Canadians are shut out from the likes of ESPN, Hulu Plus, Red Box, FX and Fox Now. Instead, the slim pickings to those in the Great White North include Netflix, Crackle, CinemaNow, Xbox Video, NFL (for scores only), Sportsnet and Machinima. Not great, but not bad, considering the PS4 only has four apps at launch. Still, it seems somewhat unfair to keep Netflix and Skype behind the wall when both require some form of payment for access or extra features.

The interface that presents all of this is based on three operating systems, the most obvious of which is a stripped-down Windows 8 in all its tile-based synergy. The look and feel of it will likely conjure up some very subjective reactions, particularly because it seems a bit crowded.

Given that Microsoft wants to position the Xbox One as an entertainment hub for the living room, it should be expected that there will be kinks to work out from the get-go. The console has pass-through ability that allows a cable or satellite box to route through it to the TV, allowing you to access the live signal through it. Voice commands can then control certain aspects, like saying “Xbox, watch TV” or “Xbox, channel up” to interact without touching a remote. Unfortunately, Canadians won’t get the full treatment. U.S. users are able to actually voice the channel they want (“Xbox, watch ESPN”) and access a program guide — both of which can’t be done in Canada yet.

The ability to “snap” an app to the side of the screen while playing a game or watching a show is interesting. This could range from a Skype chat to looking up information about a show or character using the included Web browser are just a couple of examples now, but there should be much greater integration moving forward as more apps are added.

Where the PS4 has the ability to live stream gameplay in cyberspace, the One will not do the same. It does have a “Game DVR” that records footage and stores it for you on your console or SkyDrive account, and can be activated by simply saying “Xbox, record that”. That command initiates the recording without you having to do anything else. A 30-second clip in 720p resolution is then taken and stored. Uploading it will require a free app called Upload Studio that you can download to the console from the Store.

Mobile device integration comes in the form of the free app SmartGlass, which can act as a remote or second screen, depending on the game. Available for Windows PC, Windows Phone, iOS and Android, the app can offer content and tidbits not seen in either the console or the games you play on it. It already has a pretty strong start, and should get even more interesting as the Xbox One continues to evolve its library of content.

Speaking of mobile devices, the Xbox One is more restrictive than the 360 was when it comes to streaming content locally within the home network. But it hasn’t shut the door the way the PS4 has. Using a third-party DLNA app like Skifta (iOS and Android) or BubbleUPNP, you should theoretically be able to push media from a network attached drive or PC to the console. We will be looking into this further to see what the limits are.

Regardless of what Microsoft’s long-term goals are for the Xbox One, gaming will be what drives sales, and in that respect, there’s a decent start, but this time next year will really show what’s possible once more titles come to market for it.

The Xbox One is now available at various retailers for $500, with additions like an extra controller ($60) and Xbox Live annual subscription ($60) adding to the overall price tag.