Microsoft demonstrated how the Xbox sequel will feature Xbox Live screens that are consistent across all games, so that all online matchmaking will be handled in one place by one company. No more creating a custom playlist of songs for each game, either; the next Xbox will carry your favorites from one game to the next.

Microsoft's J. Allard told the conference that the next Xbox will allow for mini-purchases of content, such as buying a tricked-out racing car for a racing game for amounts between a dime and a dollar -- something that's been proposed many, many times for Web sites but never really successfully implemented. He also hinted that the next Xbox's controllers may be wireless.