Don Mattrick took the stage first in the Microsoft E3 press conference and talked about some sales data of the Xbox 360 and its software attachment rate. Pretty convincing and good numbers. They then moved into some cool new hardcore games coming to the system.

Fallout 3 was first, with a playable demo shown. There will be DLC exclusive to 360 and Games for Windows. The game has lot’s of choice and lot’s of weapons and will offer 100+ hours of gameplay set in post nuclear Washington, DC.

Next up was Resident Evil 5, with a live demo played showcasing the game’s online co-op. Very cool stuff with Sheva as backup character, offering lots of assistance to get to new areas of the game. The demo shows that it’s important to use teamwork to overcome various obstacles in the game. Simultaneous worldwide release 3/13/2009 (US and Europe), 3/12/2009 (Japan). Pretty exciting.

Fable II is finished. Yes, you heard that right. In the game, you can go to bar and get drunk, get married and have kids, if that’s your sort of thing. You have the ability to experience your own unique world with your own unique hero. Shipping October 2008, from what we saw today, Fable 2 doesn’t look as groundbreaking as some have made it out to be.

Gears of War 2 was last with a new trailer that looks amazing. It shows taking a meat shield into the Locust sink holes to fight the hordes. Cliff Blezinski played co-op through a section going into the Locust sink hole. It showed off a huge expansive world being destroyed by the Locust. The flamethrower is amazing! Dropping down into the Locust caverns fighting enormous Locust enemies andtThe hammer of dawn makes a return in full force. At the end of the demo, fighting a Brumack with hundreds of Locust running toward you while Marcus and Dom are getting ready to ride the Brumack. Great stuff! Also announced Horde mode, with 5 player co-op taking on wave after wave of increasingly difficult Locust. Worldwide release November 7th.

Don Mattrick retakes the stage talking about being highest in software attachment, sales, etc. He declares that Xbox 360 will outsell PS3 this generation. The have over 12 million Xbox Live users, with new members every 5 seconds. Over $1 billion spend on Xbox Live since the 360 launch with over 500 million pieces of content. In US, over 1/3 of all payed 360 downloads are Video Marketplace. NBC and Universal Studios joining on starting today.

John Schappert, head of Live software and services, takes the stage. Live is what separates 360 from the rest of the pack. New dash update coming this Fall. Wow, it looks amazing! Entirely new interface that is more fun and simpler to use. Avatars officially announced. You have tons of hair styles, clothes, accessories to make your Avatar reflect who you want to be, all developed by Rare. You will see Avatars in gamercard, friends list, in games. Looks like gamerpics are going away. Tailored for the living room, makes it easy to discover new content.

Live Party is announced with up to 8 friends to chat, interact, etc. You can always be connected with the party, which is pretty cool. Options are there to share photos by streaming with everyone in the party. Xbox Live Primetime, a channel where hundreds of people can star in their own game shows. 1 vs. 100 coming this Fall. There will be massive multiplayer gameshows using your Avatars, can win real prizes. UNO Rush also announced. The party leader can launch a game for everyone in the party with a push of a button.

XBLA games coming up next. Geometry Wars 2 coming to XLBA next month. Galaga Legions, sequel coming. First true sequel after 20 years, coming next month. Portal: Still Alive coming to XBLA, exclusive this fall. South Park XBLA title coming exclusively in 2009. Xbox Live Community Games launching in the Fall as part of the new Xbox Live Experience.

Netflix exclusive partnership announced. Netflix subscribers can instantly watch movies and TV shows at no additional cost. You can share Netflix instant queue with members of your Xbox Live Party. Very cool.

Shane Kim takes the stage. More than 1000 games available for 360 by end of 2008. Showing off Banjo Kazooie Nuts & Bolts. Nothing we haven’t seen before. Also showing Viva Pinata: Trouble in Paradise. Can put a pinata card in from the Vision cam and it’ll appear in the game. Both available this holiday. Original Banjo coming to XBLA as well.

New Scene It: Box Office Smash coming, utilizes Avatars (will be first retail game to support them). Hopefully they’ll have DLC like they said last time. Will finally have online play.

You’re in the Movies - about making short, campy B movies where you and your friends are the stars. Utilizes the Vision camera. Pretty much a set of cheesy games that use the Vision camera. Not sure how much of a hit this will be. Normally you do several mini games to create a movie, which isn’t all that cool. Director’s Mode lets you edit things and share online. Game will include the Vision camera (hopefully there will be a version that doesn’t have it for people who already own the camera).

On average 80% of all songs downloads across all platforms for music games are on Xbox 360. Kai Huang on stage to talk about Guitar Hero World Tour. Will have more than 85 songs on disc with tons more at launch and beyond as DLC. More master tracks on disc than ever before. GH Tunes will be the premiere online distribution platform. REM track pack coming to 360 before other consoles. Metallica’s entire new album will be available as DLC at the same time it’s released (in September on GH3, then again on World Tour when it launches).

Lips coming from MS Game Studios. Basically a SingStar clone. Wireless light-up mics. Can do your own Karaoke from Zune without words on the screen. Mics are also motion sensitive.

Rock Band 2 timed exclusive on Xbox 360 this September. Full track list revealed. Every single track on the disc will be a master recording. New Guns n’ Roses track will be in the game. Bob Dylan - Tangled Up in Blue will be there, so will AC/DC - Let There Be Rock. Pretty cool stuff. 20 bonus tracks will be available for a free download this Fall. All DLC from Rock Band will automatically and seamlessly integrate into the game. You’ll be able to export Rock Band songs from disc into Rock Band 2. Over 500 DLC songs will be available by the time Rock Band 2 ships.

Square Enix President, Yoichi Wada, comes to the stage. Talking about their titles coming to the Xbox 360. Showing footage from The Last Remnant, available 11/20 worldwide on 360. Will also be available on Games for Windows. Holy crap! Final Fantasy XIII coming to Xbox 360!

And that’s it. No Halo announcements, no motion controllers. Lots of cool new stuff though. Should be a good year for Xbox 360 gamers.