Microsoft Keynote at E3 – Xbox360 Info Ahoy!

Microsoft is ready to challenge Nintendo at its own game.

The software giant is putting the finishing touches on a motion control system that will essentially turn its Xbox 360 into a Wii on steroids.

Dubbed Project Natal, the system will operate with any current and future Xbox 360 and turn individuals into the controllers of the videogame console, eliminating the need for them to hold anything while interacting with the device or games that play on it. System will also recognize faces and voices.

Steven Spielberg was on hand for a news conference Monday as Microsoft tubthumped Project Natal on the eve of the Electronic Entertainment Expo, which kicks off Tuesday at the Los Angeles Convention Center.

Microsoft also unveiled a major upgrade to the Xbox’s digital movie service, making titles available in high-def without the need for lengthy downloading.

Microsoft’s push to innovate in motion control technology is the latest example of how the videogame industry hopes to court the masses with casual games that consumers can play without investing hours of time.

"We’re using the best controller ever invented: you," said Don Mattrick, senior VP of Xbox during Monday’s news conference at USC’s Galen Center.

The casual game boom is what helped Nintendo sell 50 million Wii consoles and make it a runaway hit with players who aren’t hardcore gamers, and it’s a segment of the market that’s expected to help boost the videogame biz past the record $21 billion it reached last year.

"What Microsoft is doing isn’t reinventing the wheel, but no wheel at all," Spielberg said during the Xbox newser.

The director, who has a development deal to produce games at Electronic Arts and is devising future titles that will work with Natal, said the system should make games more approachable and attract people who "are just too intimidated to pick up a videogame controller." He added that despite the size of the games biz, 60% of households do not own a console.

E3 is the videogame industry’s version of ShoWest, with the major consolemakers and larger publishers parading top talent to tout their upcoming hardware and games.

Videogame designers are treated as A-list celebrities there, but traditional artists have a place at the show, too.

Paul McCartney, Ringo Starr, Yoko Ono and Olivia Harrison were on hand to promote "The Beatles Rock Band," a version of the MTV and Harmonix franchise that should also appeal to general auds when it bows in September with 45 songs and exclusive content, including the full "Abbey Road" album, for the Xbox 360.

"The game is good, the graphics are very good, and we look great," Starr said.

Also on hand was skateboarder Tony Hawk to push a skateboard-shaped controller that will be released with the upcoming "Tony Hawk Ride" game from Activision Blizzard.

The irony is that the controller would be made obsolete once Project Natal rolls out. Microsoft did not reveal a release date for the system or its retail pricing.

Microsoft made several other key announcements Monday:

  • The digital movie service on Xbox Live will eliminate the need to download pics onto the console’s hard drive; instead they will stream instantaneously in the favored 1080p high-definition format. Service, which includes Netflix, will be renamed Zune Video in the fall to tie in with Microsoft’s iPod-like handheld device.

The improvements in the movie service should prove especially interesting to the homevideo divisions at the studios given that Microsoft is providing yet another reason not to buy a physical disc to watch a pic at home — especially a Blu-ray disc for viewing a film in high-def.

  • The Xbox 360 has also locked down the "Final Fantasy" and "Metal Gear Solid" franchises, which had previously been playable only on the PlayStation.
  • Two new installments of Microsoft’s most successful franchise, "Halo," are planned, with "Halo ODST" bowing in September and "Halo Reach" in 2010.
  • Last.fm will join Xbox Live’s music service, offering millions of songs for free to gold members. CBS Interactive owns the company.
  • Facebook and Twitter will join the Xbox Live service in the fall, expanding the reach of the social networking services.

Also in a letter to the press they mentioned a few other that are not in the keynote:

  • Games on Demand. Xbox LIVE has changed the way you play your games, and now we’re changing the way you access them, with the digital distribution of full Xbox 360 games. The Games on Demand channel will launch with a library more than 30 great games, from classic hits like “Mass Effect,” “BioShock” and “Assassin’s Creed,” to family favorites like “LEGO Star Wars: The Complete Saga” and “Sonic the Hedgehog.” You’ll have access to a wide variety of great games, downloadable in only a few hours and at the touch of a button. We’ve also added the option to purchase Games on Demand directly with your credit or debit card.
  • Great games on Xbox LIVE and Xbox LIVE Arcade. Xbox LIVE Arcade is keeping the fun rolling all summer long. We are continuing our commitment to quality and innovation by delivering five weeks of downloadable blockbusters with the second annual Summer of Arcade – bringing you the biggest and best smash hits of the season including “Shadow Complex,” “Trials HD,” “Splosion Man ™,” “Teenage Mutant Ninja Turtles™ : Turtles in Time Re-Shelled,” and “MARVEL™ VS. CAPCOM® 2.” And of course I’m excited to see the launch of our beta season of “1 vs 100″ today. I’m also already playing a ton of our newly announced game, “Joy Ride,” and I can’t wait for you to experience it this holiday.
  • Avatar Marketplace. Since the launch of NXE, millions of Avatars have been created on Xbox LIVE, giving our members a whole new way to express themselves online, in games, and in their social experiences. Starting this summer, you will see some great new ways to make your Avatar truly your own. First, we heard loud and clear from you that you wanted to get new avatar items as awards when playing games, and I’m happy to announce support for in-game Avatar Awardables. Second, you’re going to see some great new options with animated Props and full costumes to add to your Avatar. Finally, we’re continuing that spirit of customization and self-expression with a virtual closet full of premium clothing and interactive props to download and purchase for your Avatar. Whether its game-inspired gear or the latest fashion trends, there will be creative options for everyone to enjoy. You’ll also be able to easily access the new Avatar Marketplace directly through the Avatar editor.
  • User Ratings. We’re adding a five star rating system that lets you easily rate any content in the Games Marketplace. Now you’ll be able to show your support for your favorite games and Game Add-ons on Xbox LIVE and also quickly organize by user rating to find the community’s favorite content. This has been one of your most-requested features, and we’re very happy to bring it to you this summer.
  • Performance Updates. We know that the details also matter. That’s why we’re making a series of updates based on your feedback. First and foremost, the entire Xbox LIVE service is being upgraded for improved performance including better guide and friends access. Some other things we’ve done based on your feedback include revamping the friends sorting list, Achievement views and improving our matchmaking support. There’s always room to improve, and your input really matters to us…so keep it coming!
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