Microsoft Corp. is set to unveil its next generation Xbox videogame console next month.

The software giant on Wednesday said it is planning a special Xbox-themed event at the company's headquarters in Redmond, Wash., on May 21, teasing fans that "a new generation" will be revealed. People familiar with the matter have said Microsoft is preparing a new Xbox to release in time for the holiday shopping season, taking on Sony Corp. whose PlayStation 4 are expected to also hit store shelves around the same time.

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