The Microsoft press conference at E3 today was one big celebration of all things Xbox 360.  They announced today a partnership with Netflix to allow you to stream movies to your 360.  This will be free for existing Netflix members.  Universal and NBC will now provide movies and TV shows on Xbox Live marketplace. Looks like the Office is finally coming to the 360.  There is a new party chat system allowing up to 8 people to get together and chat.  You can jump into games together or watch a movie from Netflix or share photos.  There is a new Xbox Live UI that looks very similar to the XBM.  You will have an avatar you can customize and you can hang with your friends in a courtyard.  Looks a lot like Miis and the plaza.

Then it comes to games and Microsoft has stolen Final Fantasy 13 exclusivity from Sony.  This just goes to boost the Xbox 360 RPG library.  Microsoft also showed off Resident Evil 5 which will be coming in March 13th of 2009 with two player co-op over Live.  Gears of War 2 will be coming out November 7th and will feature a new 5 player co-op mode where you face wave after wave of the Horde.  Fable 2 is done and will be coming out in October.  It will feature 2 player co-op and allow you to seamlessly join a friends game.  Fallout 3 will have exclusive download content on the 360.  

For Xbox Live Arcade there where two huge games announced: Portal: Still Alive and Geometry Wars 2.  The new Portal game is a times exclusive on the Xbox 360 this fall and will take place after the events that occurred in the first game.  Lips is revealed and it is a music game that allows you to sing to songs on your Zune or iPod. 

Well I'm disappointed we didn't see a Bungie game or the motion sensitive controller.  There was also no talk about a 60GB model or the price cut.  It is very clear that Microsoft has heard what Sony is planning for Home and decided to deliver those features first.

Sources:
xbox360fanboy.com - e308-gears-of-war-2-five-player-co-op-horde-mode
xbox360fanboy.com - e308-fallout-3
xbox360fanboy.com - e308-resident-evil-5-online-co-op-confirmed-friday-the-13th-l
xbox360fanboy.com - e308-lips-revealed-motion-controlled-mics
xbox360fanboy.com - e308-portal-continues-on-xbla-with-still-alive