E3: The Microsoft Xbox Conference 2006

Our detailed report covers everything you need to know from Microsoft's briefing, including Bill Gates' personal appearance, Halo 3, Fable 2, Forza 2 and much, much more, as we wrap up E3's Pre-show coverage.

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Microsoft's conference took place just an hour after Nintendo's, a stone's throw down the street at the Grauman's Chinese Theatre, in an event that eventually tied up nicely and also threw in several big surprises.

The proceedings kicked straight off with a luscious, all-new mega trailer for Gears of War which seems poised to capture a lot of fans on the showfloor. Undoubtedly some of the best visuals seen on a next-gen console so far, the entirely in-game graphics opened the conference stage nicely for Cliff Bleszinski, who took the stage to demonstrate another new sequence from the major Microsoft Game Studios title. "Don't act surprised to see me here, you knew it was gonna happen!" he groaned.

Peter Moore carried most of this year's conference by himself, although he did have help from a certain Chairman.

"The level I'm going to show is from the very start of the game", he began, explaining how one character, Marcus Phoenix, has just been pulled out of prison by his best friend Dominic Santiago. The area is being decimated and the two of them need to get to a "chopper" and make it out alive. The impressive new E3 build that was demo'd shows a very stable, smooth quality that really tightens up and improves on the superb base material that first debuted at last year's E3 show and has since been shown off in numerous demonstrations, including one to an audience at Tokyo Game Show in September.

Cliff then welcomed onto the stage the "zen master of gaming himself", Microsoft's Peter Moore, who for the most part would carry the conference by himself in the absence of J Allard [top-secret Xbox handheld commitments perhaps?] from the show and with Robbie's recent promotion seeing him steer clear of many of this year's E3 goings-on as well.

Cliff Bleszinski demoed the latest Gears of War level

"As I think you can see with Gears of War, we are delivering the most powerful high definition gaming experience to date, and it's just a taste of what's to come in this, the second generation of next generation games," said Moore. "We're delivering the next generation of gaming right here and right now, with titles that are nothing short of spectacular." Moore spoke about the major reorganisation changes within Microsoft's gaming division, explaining that "for the first time ever, all of our gaming and entertainment resources - that's Xbox, Games for Windows and Casual Games - are under a single entertainment and devices division". He said this underlines how games are driving the company's vision for entertainment - and he certainly had big-leage proof of Microsoft's intentions later in the conference.

First Moore wanted to clear something up on a more light-hearted note. "When we launched last November, we built more excitement than anyone expected, which generated some uh, shall we say, rather 'unique' challenges to go with it. So before we go much further, let's take a minute to dispel an urban myth... not a single console was hidden in Area 51 in the Nevada desert in some wacky plan to create false demand - it just didn't happen!" That cleared that up. "While the road has had more than its share of bumps, the ultimate result has been nothing short of spectacular."

Moore went on to boast how the Xbox 360 is off to a great start, or the "fastest start in console history" as he put it, saying that "at the end of next month we'll have sold over five million Xbox 360 consoles, as we continue to ramp up production." That's more than the original Xbox, the PS1 or PS2 before it, or any other console before it at this point in their lifecycles." He also said the Xbox 360 sold "more games and accessories" than previous consoles, as well as the iPod. Xbox 360 has brought about the most fundamental shift in games since it went out of the arcade and into the living room, he said. "It's a shift we defined last year with a combination of hi-def games, the entertainment network, and the digital entertainment lifestyle experience. Today you'll see how only Microsoft can deliver the full potential of these three driving forces."

Next on the agenda was Xbox Live - Moore reminds us that "connecting your Xbox to Xbox Live is as vital as connecting your computer to the Internet." He went on to announce 'the big news' that in the next year, Xbox Live will surpass six million members "by the time we come back to E3 next year". Which is kind of like saying "pwease can I have the videogame you pwomised me because I will definitely pass my finals in one year from now!" but hell, whatever, with Live we'll offer the benefit of the doubt. As long as the old "one billion gamers" line isn't pulled out, ever again.

Moore discussed the latest with Xbox Live Arcade, a service that "takes many of us back to memories of a rather misspent youth", announcing that Sega, Namco and Konami are all signed up. A series of thirdparty content will be coming to Live Arcade including Pac-Man, Contra, Frogger, Galaca, Sonic the Hedgehog, Defender, Street Fighter II Hyper Fighting, Time Pilot and Ultra Mortal Kombat 3. He described "Sonic the Hedgehog" as his favourite, based on the partnership with his " old friends at Sega".

"These are more than games, they're our shared heritage, and with Xbox Live Arcade, they'll be updated in high definition, and sometimes even integration with Xbox Live like leaderboards and achievements. We're making sure your misspent youth can stay with you as long as you want it to." He commented on the relationship with over 100 independent developers who are using the platform to bring games to market, allowing some potentially great material to break through to a the service's broad audience. "We regard this as absolutely vital for our industry," he said; "it provides up-and-coming talent a platform for their titles, and a spotlight for their creativity."

Next up Moore announced a surprise addition to Xbox Live Arcade - Lumines Live. A partnership with Warner Music Group will integrate content from artists like Madonna exclusively to Lumines Live, from industry icon Tetsuya Mizuguchi. He said the project would take advantage of all that Xbox Live has to offer. "No other console has anything close to this variety of back catalogue classics, new independent games, and new blends of games and entertainment," was his conclusion.

What about Xbox 360 games? You know, fresh stuff to play on that console you bought only a few months ago? Everything so far was an "appetiser for the main course, the next wave of Xbox 360 games," said Moore. A look at what's on the way from some of Microsoft's best first and thirdparty developers followed, highlighting a tonne of games such as Lost Planet: Extreme Condition from Capcom, Rockstar Table Tennos, Brothers in Arms Hellway, Mass Effect, NHL 2K7, F.E.A.R., Too Human, Viva Pinata, Moto GP 06, Battle for Middle Earth II, Sonic the Hedgehog, Madden NFL 07, World Series Poker, Saint's Row, 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.

"By this holiday we'll have over 160 games to choose from," he said. Attempting to push the exclusive material on the system, he highlighted Dead Rising and Lost Planet as examples, and said that the new Madden would be on the system first. In addition, the new Pro Evolution Soccer will "make its debut" on Xbox 360. Meanwhile he said that Xbox 1 now has over 800 titles currently available, and "more on the way", referring to continuing thirdparty output.

Molyneux's freshly purchased studio announced Fable 2

Now it was time for the first major game announcement, with a trailer for Fable 2. It was a fantastically built trailer sporting visuals that look far superior to Fable 1, which was no slouch. "Choose your Fortune - will you follow the path of mind or body?" Choices, choices. Lionhead is of course the newest addition to the Microsoft Game Studios group, following the success of the original Fable - two million units sold. "Peter Molyneux will deliver a gaming experience more intimate than anything before it. I'd like to say how proud I am to welcome Peter and his world class studio to the growing stable of firstparty developers at Microsoft Studios," said Moore.

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