Here's the LIVE coverage of the Microsoft Pre-E3 Press Conference (see next paragraph).
Summary: 10 million unit headstart by time PS3/Wii released, more than 160 new games by this holiday, HD-DVD addon shown and planned for this holiday season aswell but no price yet, 6 million Xbox Live members by E3 2007, Live Anywhere unites all gamers, old arcade titles from Konami, Midway, Namco and Sega coming to LIVE arcade, Halo 3 (coming in 2007) preview trailer (streaming/download/youtube), Grand Theft Auto 4 same day on Xbox 360 (with exclusive episodic content) as PS3.

You can now also download the full video of the Microsoft Pre-E3 Keynote for free (in low-res) at gamespot.com (free reg. req.) or you can download just the audio here.
You can find the official press release of the Pre-E3 Conference titled "Bill Gates Declares 10 Million-Unit Head Start for Xbox 360 and Outlines Future of Interactive Entertainment" here[microsoft.com]

* 11:40pm: Looks like they are starting early. CliffyB on stage giving a demo of Gears of Wars now. Looks really good, no launch date given.
* 11:49pm: Moore talking about gaming division: all of their gaming and entertainment resources are under a single division now. 5 million Xbox 360 will be sold in 8 months time, better than other consoles or even iPod. 6 million Xbox LIVE users by E3 2007. On average 4.5 games and 3 accessoires sold per Xbox 360 console.
* 11:54pm: upcoming Xbox Live Arcade games: Pac-Man, Contra, Frogger, Galaga, Sonic the Hedgehog, Defender, Street Fighter II Hyper Fighting, Time Pilot, Ultra Mortal Kombat 3 and Scramble ... and more old arcade content from Konami, Midway (Ultimate Mortal Kombat), Namco (pacman, digdug, ...) and Sega (old Sonic games!) ... ofcourse all updated in High Def.
* 11:56pm: Agreement with over 100 independant developers for IND XBox LIVE Arcade games.
* 11:57pm: Luminus Live coming to Live Arcade.
* 11:57pm: Partnership with Warner Music Group means exclusive music content. Example: Madonna music in Luminus Live.
* 11:58pm: Live Arcade is just appetizer for 'real' Xbox 360 games. The next wave of 360 games will be "truly next generation games".
* 11:59pm: Some video demos running: Lost Planet, Table Tennis, Brothers In Arms, Mass Effect, NHL 2K7, F.E.A.R., Too Human, Viva Pinata, MotoGP '06, Battle for Middle-earth II, Sonic the Hedgehog, Madden, World Series of Poker, Saint's Row, WWE Smackdown vs. RAW 2007, Stranglehold, Enchanted Arms, Test Drive Unlimited, NCAA Football 07, Dead Rising, DDR Universe, Prey, Superman Returns, NBA 2K7, Crackdown, Ninety-Nine Nights and Gears of War.
* 12:01pm: Over 160 Xbox 360 games by holiday season 2006, with several exclusive titles.
* 12:03pm: Software still coming out for the original Xbox too ... but only from 3rd parties.
* 12:04pm: Announcement of new Lionhead game: Fable2. (video GC demo running - "Every choice leads to a different destiny")
* 12:05pm: Another new game from MS Game Studios: Forza Motorsport 2. Showing video demo of game - realism is high, no idea how real-time this is. Will have over 300 cars (that you can tune and skin), upto 11 opponents on Xbox LIVE. To be released this holiday season.
* 12:08pm: For forza MS will release an Xbox 360 Wireless Racing Wheel announced, with force feedback. Also a wireless headset (that look less crap than the normal Xbox 360 headset) and Xbox Live Vision Camera (that will be used by many future titles). All 3 HW addons to be released this holiday season.
* 12:10pm: Talking about Japan now ... how they are still committed to this country. Working on inspired and innovative content for Japan
* 12:11pm: In meantime I get tons of people msg'ing me many trailers have been added on Xbox LIVE right now, including a 104.42MB Halo 3 trailer - heh.
* 12:12pm: Sakaguchi talking about and showing us Blue Dragon. Blue Dragon is due this holiday in Japan. Lost Odyssey, "one of the most original title in years", is also coming soon in Japan.
* 12:13pm: Moore says Dead or Alive Xtreme 2 from Tecmo is also coming on Xbox 360. Trailer coming later this week on LIVE.
* 12:13pm: Trailer of Splinter Cell: Double Agent. Due in september 2006 on the 360.
* 12:15pm: MGS(Rare) comes talk about Viva Pinata. Video demo running. "It's about letting your imagination go and transforming a small piece of land into a perfect paradise where pinatas want to come". You will be able to buy and trade items, accessoires and pinatas over Xbox Live Marketplace.
* 12:17pm: Viva Pinata coming this holiday season as well. Viva Pinata clearly shows MS plans to attract more than just the hardcore gamers, also the less experienced gamers. Also for a broader public: "next-gen Sonic" and "Lego Star Wars" also coming to Xbox 360.
* 12:20pm: Some numbers ... over 18 million downloads from Xbox Live MarketPlace, over 1000 downloadable content pieces available. All Xbox 360 games have some kinda downloads available on Marketplace. Game demos work - after release of "Fight Night" demo, pre-order went x5. Marketplace will also be used for true episodic content.
* 12:21pm: Marketplace will get music videos, movie trailers, and exclusive content from Paramount, Touchstone, Walt-Disney, Epic Records, Lionsgate and 20th Century Fox.
* 12:21pm: Tonight for first time you can download HDTV content. "Gears of War: Road to E3" a docu-drama starting on Xbox LIVE and later on MTV.
* 12:22pm: MS shows HD-DVD addon. Looks like like a smaller Xbox 360. Addon is also due this holiday. No price given yet but Moore says it'll be a "bargain". 150 movie titles expected by this holiday.
* 12:24pm: Grand Theft Auto IV coming to Xbox 360 on October 16th 2007 (USA/CAN) and October 19th 2007 (Europe) ... "the first date it's available" ... "available on our platform from day one". Last quote means it's not exclusive for Xbox 360 - the official website confirms it'll come out for PS3 aswell. And yes it's 2007 not 2006. The Xbox 360 will get exclusive episodic content for GTA4 from RockStar via Xbox Live though.
* 12:25pm: Now talking about Windows Vista ... the "most game-friendly OS in Windows history" using DirectX 10.
* 12:27pm: They show a video of 'Crysis' on Vista.
* 12:31pm: More Vista DirectX 10 games: Age of Conan, Flight Sim X. Vista is "The single biggest launch in the history of Microsoft, and also a great day for gamers". Vista built to run games.
* 12:33pm: Oblivion sold 1.7 million copies in 3 weeks on Xbox 360 and PC. More Xbox360/PC releases coming - video game of "Shadawrun" ... coming january 2007.
* 12:37pm: Video demo of Remedy's Alan Wake now. Some great facial expressions there. Exclusively on Windows and Xbox 360
* 12:38pm: w00t - Bill Gates coming on stage now. He says he is PGR3-addicted and his family likes Live Arcade (Zuma, ...).
* 12:40pm: Gates repeats again how important the software (dev tools, environments, interfaces) are for the success of a console.
* 12:41pm: MSN, Hotmail will be connected with LIVE. They want to attract people of all age. They are also adding 8 new countries (total to 40): South Africa, Chile, India, Brazil, Poland, Hungary, Czech Republic, Slovakia.
* 12:42pm: Biggest Xbox 360 problem was keeping it in stock ... but that's now solved, Xbox360 should be widely available. Plan to sell 5 to 5.5 million units by end of June 2006. Gatest says they have set goal internally to sell 10 million units before the PS3 and Wii launch, and they now think they'll be able to reach this goal.
* 12:43pm: 3 million LIVE subscribers, 6 million planned by next year. Next level of Xbox LIVE is connecting it with PC and the Windows Mobile world. Connecting it with 230 million MSN Messenger users, 150 million Windows gamers and +1 billion game-ready cellphone. "LIVE keeps expanding"
* 12:45pm: "We're going from Live to Live Anywhere". Live Anywhere will roll out this yeat and it will be part of Windows Vista. 1 online community no matter what device you are on: 1 interface, 1 identity, 1 friendslist, 1 message centre, 1 marketplace. You could for example start game on Xbox and continu it on the phone.
* 12:48pm: Scott Henson on stage to demo Live Anywhere. Shows "Shadowrun", you can call up friends list and see what they are doing nomatter what platform they are on. (in demo Major Nelson is on list and showing as working on his Windows Vista PC, Scott sent Major Nelson a cross platform invite on his Vista PC). Vista will have integrated friendlist on desktop.
* 12:50pm: One gamertag and gamerscore no matter what the platform is. You can even do achievement comparisons across different platforms. On shadowrun demo PC can play online against Xbox 360. All transparent to end-user ... no need for setting IP stuff and so.
* 12:53pm: Mobile stuff now. They use a Motorola Q running Windows Mobile. Showing custom made Marketplace on Windows Mobile and how you can download and play Zuma with your gamertag on your mobile. Also download music and video possible on mobile. Gamercard, friendlist also on mobile phone.
* 12:55pm: Other example is how you can skin your car on Vista with Paint Shop and race with it on Xbox 360.
* 12:57pm: No date when all this "Live Anywhere" will come, but it shouldn't take too long.
* 12:59pm: Conference ending with ... guess what ... a Halo 3 trailer of course that will be coming in 2007 on Xbox 360.
You can download the Halo 3 trailer via Xbox LIVE (which is going extremely slow atm), or on your PC here (streaming) or here (download).
"This is the way the world ends. Halo 3. Finish the fight. 2007."

News-Source: http://www.xbox.com"