In just a few short minutes, the Microsoft Press EVent from E3 will begin, as will our live coverage.

Things are just about to swing into gear, so make sure you stick around for the latest news!

Don Mattrick coming on stage. Mentions the biggest sellers are on 360. GTA IV, Bioshock, Guitar Hero, Rock Band and, for some reason, Scene It!

Microsoft will unveil a new experience that will change the industry.

GoW2, Fable 2, Fallout 3, RE5 as big titles this year.

Fallout 3 trailer is showing - It's a black and white 50s style training film. Todd Howard of Bethesda comes out and tells us that the new Fallout 3 trailer will be coming out today. He is demoing Fallout 3, but his controller got disconnected for a second. He brings up the Pip Boy 3000 and shows the radio function of the Pip, and colonial music plays as he uses VATS to snipe enemies.

Howard tells us there are over 100 hours of gameplay in Fallout 3.

He is showing some robotic tanks, automated turrets and sentry bots and uses pulse grenades to take them out.

He then announced there will be "sunstantial" exclusive 360 DLC for Fallout 3.

Capcom's Jun Takeuchi(RE 5 producer) comes on stage wearing an Umbrella sweatshirt. He is showing the first public gameplay demo of RE5 - Chris Redfield is offing some zombies.

ON-LINE CO-OP is announced for RE5!!!!

Sheva is Redfield's partner.  Game is indeed based in Africa. Chris just launched Sheva over a gap in a co-op move - very-splinter cell-ish.  Now she is fighting zombies up close while Chris snipes from a distance.  He is switching back and forth between them at will.  Cutscene with a chainsaw wielding boss rearing his ugly head.

......And the demo is over.  But HOLY CRAP ON-LINE CO-OP!!!! 

Worldwide simultaneous release on Friday the 13th, March 2009.

Peter Molyneux comes on stage exclaiming "Fable 2 is finished". Showing a trailer... the one from GDC.

Online co-op is here, with a new "twist".

"I want to show you the ability to play in coop mode over Xbox live..." there are orbs that wander around the scenery, Fable II players in single-player mode, can invite them to the game. "Why? Your hero, your world is unique to you... we've got a dynamic landscape that changes, you want to invite people in!" Little orbs represent your friends playing their single-player games -- inviting them into the game is a matter of walking up to the orbs and pulling them into your game. Just like that, no lobbies.

Your world and character is unique to your game, so friends can hang out (or fight) in each other's worlds. Peter is taking his friend to his house to meet his wife and son. "It's the things that other games don't do... hang out in the bar and get drunk, chat people up, there' a whole wealth of things you can do. One of the things you can do is get married. ... I'm not a rich adventurer, but I've got a lovely family life, there's my son, and my coop buddy can interact with them. (My wife actually likes belching, by the way.)"

One last bit of news: It's out in October (this year!)

A clip of Gears of War 2 is showing. Marcus and Dom in an underground cavern overrun with locust of all shapes and sizes.

Out comes Cliffy B (I know he doesn't want to be called that anymore, but you can type it faster).  Showing off 2P Co-op.

Game looks amazing.

A locust attackes with a flamethrower, which Marcus promptly scoops up and uses to raost enemies to a crisp.  More grappling hooks show up, and a stream of locusts launches an attack. Dust and rubble is everywhere. A Brumak shows up, with its shots from down below making the entire building break apart and shake.  Looks like you can pilot Brumaks.

Gears of War 2 available worldwide on November 7

Don Mattrick back out in the Lounge Area.  Microsoft is registering their biggest year ever, he says.$48 billion on video games this year! They say they are bigger than box office, bigger than music.

They have sold 5 million units more than PS3's install base.  Xbox 360 is "outselling Wii and PS3 combined"

A new member every 5 seconds on Xbox Live.  Since launching the 360 consumers have spent more than one billion on live. 500 million pieces of content have been downloaded.  Movies and tv   accounts for a third of all downloads on Live in the US.  NBC and Universal have both entered into agreements with Microsoft to provide content.  That also means USA and SCI FI.  Clips of all kinds of NBCU stuff.... The Office, Monk, Thirty Rock, Heroes, The Fast and The Furious, Scorpion King, 12 Monkeys, American Pie, The Mummy Returns, Bourne Identity... Available starting today.

Now asking how they continue to drive innovation.  To show how he's bringing up John Schappert.

"This generation the biggest most revolutionary changes will happen online"

They're showing us the new software update.  

"Welcome to the new Xbox experience"

3D interface with Avatars

Looks a lot like the SingStore interface.

The GamerCards will be updated with Avatars.

You can modify your Avatar's clothes, hair, etc.  Rare designed the Avatar.

Releasing new clothes for your Avatar via Xbox Live Marketplace.  Thousands and thousands of pieces of content, they say.

Avatars are just the beginning.

New Community channel... instead of a list of friends, you can actually see them.  add up to 8 friends to chat, share content.  Called LIVE PARTY.

Xbox Live Primetime unveiled, rolling out this fall.  These are gameshows. 1 vs 100 coming exclusively to Xbox Live this fall.  Uses Avatars.  And you can win real prizes.  These primetime games will all be scheduled, not something you can just play when you want. Just like on TV.

Uno Rush is announced.  Looks like Uno using the Avatars.  Live Party to Uno Rush is "seemless"

Geometry Wars 2 hits XBLA next month.

First official Galaga sequel in over 20 years. Galaga Legions looks like a Pac Man CE take on Galaga.

PORTAL SEQUAL COMING TO XBLA!  Titled "Portal Still Alive".  GlaDOS is announcing it. Coming this fall!

Portal Still Alive a 2008 exclusive to the 360!!

Xbox Live Community Games will launch in the Fall

Netflix officially coming to Xbox 360!  Stream more than 10000 movies and TV episodes.

Here comes Shane Kim to the stage.

First exclusive downloadable episode of GTA IV coming later this year, Shane say.  1000 titles launching by the end of 2008.

Showing us Banjo Kazooie Nuts & Boltsand Viva Pinata 2.

Original Viva Pinata is going to be released on Live Arcade.

Showing more Scene It!  Scene It! Box Office Smash.... people of all ages and lifestyles will enjoy it, for sure.  Includes Avatar support.

You're in the movies is a game that lets you get yourself into short campy B movies. 

It's like the EyeToy software. 

You're In the Movies shows an awkward Don Mattrick now wearing clown pants and being yanked back by a bungie cord.   John Schappert is running away from a radioactive lizard.

You're In The Movies will include a LIVE Vision camera when it ships this fall

Talking about music games.  3.5 million songs downloaded on Live.

Kai Huang, founder of RedOctane takes the stage.

Apparently Huang came up with the Guitar Hero concept, he and his brother.

He's showing off a new drum with cymbals, and a touch slide guitar.

talking up the Guitar Hero World Tour music creator... you can use a keytar.

Xbox 360 owners can get an REM trackpack before anybody else .

Van Halen and The Eagles are exclusive to World Tou.

Metallica is joining forces with Guitar Hero in a huge way.  New Metallica DLC hits day and date with the new Metallica album, Deth Magnetic.

LIPS is announced.  The Lips mic is pulsing to the music.  

You can import tunes from your Zune or ipod!  That's kinda neat.

Available this Holiday.

Keiichi Yanno from iNiS is taking the stage

Breaking new ground, lets you sing from your own music collection, whether that's from a Zune or iPod.  Motion sensative wireless mics.

Alex from Harmonix is taking the stage.  Showing the entire Rock Band 2 soundtrack.... 84 songs, each one a master track.  First new track from the new Guns N Roses album will debut.

Almost all of the tracks from the first game can be moved over to Rock Band 2.

Final Guest - Yoichi Wada from Square Enix is about to take the stage!

He is talking about Infinite Undiscovery, The Last Remnant and Star Ocean.

Inifinite Undiscovery hits North America on September 7.

Star Ocean The Last Hope hits Spring 2009.

The Last Remnant will be available first on Xbox 360 November 20th, worldwide.  it will also be available on PC.

Mattrick comes back out to sum things up.

Wada is back on stage as well.

FINAL FANTASY XIII IS COMING TO THE XBOX 360!!!!!!!!!!

Make sure to come back tomorrow for Nintendo's & Sony's Press Events!