LOS ANGELES—Videogame-console makers are grappling with the rise of an array of less-expensive options for gamers—and the price differences aren't getting smaller.

During a presentation at the Electronic Entertainment Expo in Los Angeles, Microsoft announced Monday that its new Xbox One videogame console will go on sale in November for $499. MarketWatch's Dan Gallgher discusses the highlights from the E3 show. (Photo: Getty Images)

Microsoft Corp. announced Monday that its new Xbox One will be launching in November for $499, well above price levels it has previously set for new videogame-console launches. The company was quick to point out that the device would sell as a single package, with no extra charges for accessories such as its popular Kinect controller device.

"I think we're bringing tremendous value," said Marc Whitten, head of Microsoft's Xbox Live Internet service, in an interview following the announcement here at the Electronic Entertainment Expo, or E3.

But the new console's starting price—about $200 more than when Microsoft's Xbox 360 was launched in 2005—comes as videogames are increasingly becoming a free or low-price standard feature of smartphones, tablets, televisions and set-top boxes.

As the E3 video game conference kicks off in LA, we look at the numbers: What's the average age of a gamer? How big is the global gaming industry? What's the most popular video game? WSJ's Jason Bellini has "The Short Answer."

Later Monday, Sony Corp. said it would charge $399 for the PlayStation 4, $100 cheaper than the Xbox One. At the auditorium where Sony announced a catalog of new games for its device, the crowd cheered when the company unveiled its pricing details.

"Is PlayStation the best place to play? Without a doubt," Andrew House, head of Sony's PlayStation business, said at the event.

Sony also drew a contrast between the way its machine will handle used games, when compared with the Xbox. Sony said it will not place additional restrictions on the way discs work with the PlayStation 4, allowing gamers to effectively sell, trade and lend games with one another just as they have in the past. Microsoft said last week that some games could have additional restrictions on how they're handled, and that the Xbox One would need to connect to the Internet at least once each day.

The price differences in particular underscore console makers' determination to add new microchips and other features to their hardware to make videogames much more realistic than those played on less-expensive devices.

Microsoft, in particular, wants its hardware to play a broader role than in videogames alone. When it first took the wraps off Xbox One in late May, it started by showing off features like live-television technology and the ability to video-chat through its Skype service. It wasn't until about 25 minutes into Monday's hourlong presentation that the company announced the first new games for the device.

At the E3 presentation, which was dedicated to software for the Xbox One, Microsoft showed an array of first-person action games that show off the console's improved graphics. But the company also showed new gameplay aimed at customers who like more casual titles.

One was a world-building game called "Project Spark." It allows customers to build their gameplay world by shouting commands at the Xbox One, such as "Show me trees," and trees suddenly appear on the ground. Gamers can also shape the ground using a tablet running Microsoft's SmartGlass applications.

Don Mattrick, head of the Microsoft division that includes Xbox, said that while games are the most widely used application for most consumer electronics, his unit wanted to make an all-purpose entertainment machine for "all scenarios and all combinations."

Videogame-console makers' attempts to grow outside the well-worn mold of selling disks and cartridges for about $60 a pop come at a time when the industry has been under attack from all sides.

Just as cameras have evolved to become a common feature in nearly all consumer electronics from their beginnings as bulky devices for taking photographs, videogames have proliferated to all ends of the electronics universe. Smartphones and tablets, for example, have become unexpected hits in the gaming world. Nearly three-quarters of the 50 most-downloaded paid apps of all time in Apple Inc. 's App Store, for example, were games.

Even TV-set makers, such as Samsung Electronics Co. , have joined in the game, offering a version of Rovio Entertainment Ltd.'s Angry Birds game for its televisions.

That trend, along with cyclical declines in the industry, has led to more than a year of monthly sales declines of packaged-videogame products in the U.S., according to market researcher NPD Group.

Mr. Whitten said he believes the Xbox One's innovations and its mix of appeal for core gamers, with titles like a new installment in the "Halo" sci-fi shooting series, along with more casual products like TV-watching technology and "Project Spark," will make the device appealing to a broader range of customers.

"I believe Xbox One can grow at a significantly higher clip than 5% on its own," he said, referring to estimates by PwC. "The product that opens up the next-generation living room will have very large growth."

He added: "The opportunity is much larger."

Sony is taking a different approach with the PlayStation 4 from Microsoft. The Japanese company is publicly saying that its new device will be aimed at hard-core videogame fans—and not styled as a broader entertainment offering.

But the electronics giant also is making sure that its new system is capable of more. While the Playstation 4 may not offer the same type of television-viewing features as the Xbox One, Sony will likely bring a suite of entertainment options such as those of Netflix Inc., Amazon.com Inc. 's Amazon Instant Video and Hulu LLC—all are already available on the PlayStation 3—to the new platform, according to people familiar with the matter. In December, Netflix said the PS3 was the most-used device for streaming its video service.

Hulu is a joint venture partly owned by News Corp., which also owns The Wall Street Journal.

At its E3 press conference later Monday, Sony said its entertainment arm plans to produce content exclusive for its PlayStation Network and the PlayStation 4. It is a similar strategy to that of Netflix and Microsoft, which are both creating exclusive shows for their video services.

Meanwhile, rival Nintendo Co. introduced a video remote service for its Wii U console last year. The service, called Nintendo TVii, used the console's tablet-like controller to access programs on cable and satellite as well as on-demand streaming services from Netflix, Amazon and Hulu. Nintendo is trying to create a second-screen experience to allow users to comment on social media while watching sports or television.

Nintendo executives said they wanted consumers to feel compelled to pick up the Wii U controller constantly throughout the day for a wide range of activities, and not solely for gaming.

Write to Ian Sherr at ian.sherr@dowjones.com and Daisuke Wakabayashi at Daisuke.Wakabayashi@wsj.com