The Billion Dollar Man:

Microsoft began its press event with Microsoft Chairman and Chief Software Architect Bill Gates taking the stage and making a bold prediciton: the Xbox 360 will have a 10 million-unit head start by the time the competition enters the market and more than 160 games by the end of the year. Gates went on to outline the company's new vision to connect millions of Xbox 360 gamers with hundreds of millions of Microsoft Windows-based PC and mobile gamers from around the world through Xbox Live.

Xbox Live.. Anywhere?

Dubbed Live Anywhere, the initiative talks about an always-on world where digital identities, games, friends and digital entertainment are always accessible through a familiar Xbox Live interface, regardless of location or device. The plan also clears the way for cross-platform gameplay scenarios, with participants using Windows-based PCs, mobile phones and Xbox 360 consoles to play together simultaneously.

Microsoft said that it expects more than 6 million gamers to be connected to the Xbox Live network. In addition, more than 25 million casual gamers are currently playing games on MSN Messenger and MSN Games. Gates outlined steps to bring the Live Anywhere, which includes bringing Xbox Live experiences to Windows-based PCs. Gamers will have the ability to jack into the Xbox Live world from their Windows-based PCs early next year to play games with friends. Xbox Live on Windows will give gamers a consistent online game experience in which they have one identity, one friends list, one set of achievements and voice communications across all games on the network. These experiences will become more clear with the Windows Vista operating system and Shadowrun this winter.

Halo 3 and More:

Gates joined Peter Moore, corporate vice president of the Interactive Entertainment Business in the Entertainment and Devices Division, on stage to announce a barrage of new game titles coming to the Xbox 360 and Windows Vista platforms.

Microsoft announced that it will have 160 Xbox 360 titles by end of 2006. Gates and Moore got the crowd's attention with an initial look at Halo 3 (see the video here , the sequel to the highly successful and critically acclaimed Halo franchise. There's no denying that enthusiasm for Halo 3 has been building since its predecessor, Halo 2 became the biggest launch in U.S. entertainment retail history, with $125 million in sales and 2.4 million copies sold in the first 24 hours. In this third chapter of the "Halo" trilogy, Master Chief returns to finish the fight, bringing the epic conflict between the Covenant, the Flood and the entire human race to a dramatic, pulse-pounding climax.

Microsoft Game Studios also showcased exclusive Xbox 360 titles Gears of War (Epic Games), Fable 2 (Lionhead Studios) and Forza Motorsport 2. Ubisoft's next-gen version of Tom Clancy's Splinter Cell Double Agent will also debut on Xbox 360. In addition, Microsoft Game Studios showed Alan Wake (Remedy Entertainment) and Shadowrun (FASA Studio), both slated for Xbox 360 and Windows Vista. Shadowrun is the first cross-platform Xbox 360 and Windows Vista-based game featuring team-based combat that combines modern weaponry and ancient magic.

Windows Vista and DX10:

For Windows gamers, the consumer launch of Windows Vista in January 2007 will introduce the DirectX 10 API and new ways for developers to make the most of the Windows game platform. Microsoft highlighted several games from major publishers that will support Windows Vista and DirectX 10 technologies including Crysis (Electronic Arts), Age of Conan: Hyborian Adventures (Funcom) and Flight Simulator X (Microsoft Game Studios).

Xbox Live Arcade Expands:

In addition to these titles on Xbox 360 and Windows Vista, several new games are coming to Xbox Live Arcade. Microsoft and its partners announced an expansion of the Xbox Live Arcade catalog, adding classic favorites such as Pac-Man, Galaga, Dig Dug and Rally-X from NAMCO BANDAI Games America Inc; Frogger, Track & Field, and Contra and Super Contra from Konami; Defender, Paperboy, Root Beer Tapper and Ultimate Mortal Kombat 3 from Midway Games; Sonic the Hedgehog High Speed from SEGA; and new titles such as Lumines Live from Q Entertainment Ltd.

Grand Theft Auto VI!

If there's one game that Xbox 360 fans want to see it's GTA and Microsoft and Rockstar are happy to oblige. Microsoft and Rockstar Games also announced a strategic alliance to provide exclusive episodic content downloads on Xbox Live related to the game. Grand Theft Auto IV will be available for the Xbox 360 platform on day one of its global release. Grand Theft Auto IV is expected to be in stores on Oct. 16, 2007, in North America and Oct. 19, 2007, in Europe.

New Accessories:

Microsoft also announced new cross-platform accessories such as the Xbox 360 Wireless Racing Wheel, Wireless Headset, HD DVD Player, Wireless Gaming Receiver for Windows (connects existing and future Xbox 360 wireless accessories to the PC) and the Xbox 360 Memory Unit (256MB), which work on Xbox 360 and Windows. The new Xbox Live Vision video camera will allow consumers to customize their gamer picture, send photo messages, and video chat with friends and family over Xbox Live.

360 Invasion:

Finally Microsoft said that it will launch the Xbox 360 in seven copuntries this year including Chile, the Czech Republic, Hungary, India, Poland, Slovakia and South Africa. Additional markets will see launches later this year and beyond.

Final Thoughts:

There's no denying the power of Halo 3, and depending on when Microsoft drops this bomb it could impact sales of any console system - it's just that popular. Also you can't complain about the next GTA title coming to 360! I'm not sure how "Xbox Live Anywhere" is going to play out with PC gamers who may not like the Xbox Live expereince but it is an interesting concept that gamers may appreciate. Microsoft's got a pretty strong line-up of titles for this year and beyond and plenty of third-party support for Xbox 360, so we'll just have to see how all this plays out at the end of 2006. Stay tuned to GameShark for all the latest Xbox 360 and Windows gaming news coming out of E3 this week. - James Fudge, GameShark.com