Without the focus on shiny new hardware that was the anchor of rivals Sony and Nintendo at E3, Microsoft largely stuck to sheer numbers, games and a surprise or two.

Epic Games kicked off the Microsoft press conference with a trailer and live demo of the, well, epic forthcoming shooter Gears of War, powered by the Unreal game engine. A riveting (and surprisingly bloody) opening to what would be a fairly deliberate, revenue-oriented presentation.

Next, Microsoft's Peter Moore took center stage and talked some competitive smack about Xbox 360 sales numbers since the November launch (over 5 million units, besting the comparable-time sales records of the PS1, PS2, and Apple's iPod); he also rolled out the Microsoft vision of a completely integrated entertainment/gaming community (Microsoft's game and entertainment departments are now under a single division) connecting 360, PC and even mobile phone users, and projected some 6 million Xbox Live members by this time next year.

Redirecting the focus to the games themselves, Moore demonstrated forthcoming Xbox Live Arcade games such as Frogger, Pac-Man, Contra (yes, the Code will still work--and if you understand the meaning of this, shame on you), Defender, Mortal Kombat, Galaga, Scramble and Sonic. He also unveiled the addition of Lumines Live to Live Arcade--and by way of demonstrating the new partnership with Warner Music Group, "treated" the audience to the spectacle of Madonna music running in the Lumines Live game environment.

By the end of the year, at least 160 XBox 360 games will be available, including a number of platform-exclusive titles. The video demos that followed included Ubisoft's WW II-epic Brothers In Arms, NHL 2K7, Mass Effect, Rare software's mind-bogglingly kid-friendly Viva Pinata, Too Human, Battle for Middle-Earth II, Madden, World Series Poker, Stranglehold ("starring" a faithfully-rendered Chow-Yun Fat), Atari's Test Drive Unlimited, NCAA Football 07, Dead Rising, the long-time-coming Prey, Superman Returns, Rockstar Table Tennis, and many more. Speaking of Rockstar, Moore also revealed that the free-roaming crime game Grand Theft Auto IV would debut on the XBox 360 in October, to be followed by periodic episodic content available for download.

Developer Lionhead also showed a trailer for its acclaimed Fable 2 role-playing game, and wannabe race drivers got a look at the massively-customizable Forza Motorsport 2, offering over 300 cars and compatibility with a new wireless, force-feedback, top of the line racing wheel. A new wireless camera and voice headset were announced, slated for a Fall release, and an HD-DVD peripheral (resembling a smaller, sidekick 360) is due in time for the holidays, just in time for a selection of some 150 movie titles. No price was given for this proclaimed "bargain" add-on.

After a look at Windows Vista ("the most game-friendly OS in Windows history," utilizing DirectX 10) and an all-too-skimpy teaser on the psychological horror/sleep deprivation title Alan Wake, Microsoft's second big surprise took center stage--literally, in the form of Bill Gates (previously an E3 no-show). MSN and Hotmail, the audience learns, will be connected with LIVE, for a nigh-inescapable linked, global gaming/entertainment experience. Eight new countries will be brought into the interconnected fold, including South Africa, India, Brazil, Poland, Hungary, Chile, Slovakia and the Czech Republic, bringing the total to 40 nations.

The ambitious "LIVE Anywhere" scheme, slated to appear later this year, will integrate Windows Vista PC users, XBox 360 gamers, and mobile phone owners: The boast--admirable if it pans out--is nothing less than one interface, one Friends list, one identity, one message center...and, yes, one marketplace. Start a game on 360, keep in touch with your game-mates via the PC, and even purchase and swap downloadables on your phone? If Gates has his way, yes.

It was simultaneously the expected thing and an uproarious crowd-wower, but the conference wound up with an impressive teaser-trailer for--what else?--Halo 3 (Xbox Live users can download the trailer, as can PC users).

In all, the Xbox 360's future appeared somewhere between a gamer's paradise and an Orwellian vision where Big Bill is Watching (and collecting), but by the end of the conference, Microsoft had much of the crowd at least wishing to buy into the dream, to join the collective (for nominal Marketplace fees) ...visions of Master Chief dancing in their heads...

Also See:

• Inside E3 2006: Sony Spills PS3 Beans at Pre-E3 Show


• Inside E3 2006: Nintendo runs risk, gladly, impressively