Microsoft came into this E3 as the highest selling current gen console made sure you knew why, the games. Early in the show Microsoft spent the time showing NPD numbers on how Xbox 360 had sold just 100K less than the Wii since it's launch and how it has blown past the PS3. The showed how consumers where buying more 3rd party games for the 360 than the PS3 and Wii combined. Pretty much they laid down their reasoning for not cutting the price of their game console.

Microsoft showcased only games that would be released this fall with exception to one title, Resident Evil 5 will be coming the Xbox next year. Another game that previously was not available on an Xbox console has come home to Microsoft. Microsoft showed off game play from Rock Band, Madden '08, Assassin's Creed, PGR 4 and Call of Duty 4 plus showed trailers of Grand Theft Auto, Mass Effect and Halo 3 plus many more. In all Microsoft has 19 retail titles coming out this fall to build what they call the best holiday lineup ever.

One large announcement was that Xbox Live Marketplace now has a deal with the Disney Studios. Now you can rent movies from Disney, Miramax, Touchstone and Hollywood Pictures for download from the Marketplace. This deal also includes ABC TV shows that you can purchase. Now Xbox Live Marketplace has more high definition content than any other download provider including cable tv. Microsoft also announced that this line of business has been crazily successful and they will be bringing the service to Canada and Europe this fall.

After some leaked photos of a new Xbox 360 where shown on the web before the press conference the rumors of a new Xbox 360 console where high. More news that the Xbox 360 would be getting a new set motherboard/processor upgrade also hit the Internet. This new board would be using the 65nm chip set and run much cooler and quieter than the existing Xbox 360s. Alas this was not what Microsoft was showing off. They showed off a greenish grey Halo 3 themed Xbox 360. Needless to say this announcement was not met by cheers.

Overall the press conference was underwhelming and part of that was because people wanted to see new games and would have liked to have seen a price drop. Microsoft did what they needed to do to show why they are the best gaming console available. They are already the best way to download movies and TV shows to watch on your TV and have improved on that buy adding Disney to the fray. I wouldn't expect a price cut till Spring of '08 now since it is obvious they will keep the consoles prices where they are until after Halo 3 launches.