Don Mattrick was in fine fetter this morning, ushering in a hot and smoggy day in LA with Microsoft's pre-E3 press conference. Mattrick kicked-off an eventful showcase by highlighting the 360's 'gamers' console' credentials, drawing the focus onto big name series like Call of Duty, BioShock, and more.

That was not, however, the main focus of Microsoft's briefing today. Mattrick tells us that are looking for growth by delivering "new experiences", words like 'inclusive' and 'everyone' being mentioned repeatedly before we entered the announcements part of the show.

Music pumped, lights danced, and 3 was duly demonstrated by Todd Howard from Bethesda. Having learnt valuable lessons from Oblivion, the producer revealed that they were so taken with the success of that game on the 360, that they will offer exclusive following the release of the new RPG. Not a bad start.

We were then treated to Jun Takeuchi and his latest published opus, 5. The game was dated, excitingly, and it was demonstrated. African settings abound, and some interesting co-op play. There was also lashings of claret, as you'd expect. The weapons looked suitably meaty, and this was enhanced by some impressive sound effects.

Peter Molyneux was next-up, showing off the extensive alternative life are hoping you'll choose to lead in 2. Rich and vivid fantasy visuals lead you to a highly customised character evolution system, that will see you facing moral decisions as you play through the game. Peter introduced us to his family, and four year-old child, before affirming a release in October, also letting slip that the game is actually finished.

Epic Games' were represented by in the next demonstration, the exec showing off progress on the superb looking 2. Co-op play was the focus of the demo, that saw Marcus Fenix and a comrade, battling through vast hellish environments, rich in detail and incidental interaction. tell us the game will arrive on November 7th.

It was back to Big Don next, who confidently assured us that the Xbox 360 will outsell the PS3 this generation, noting market leadership in the US, over a billion dollars in Live download - not to mention a raft of new content partners for the Video Marketplace.

The hardcore titles touched upon, Microsoft now went all mainstream on the assembled media, revealing that the entire Live experience will be changed this autumn. Yes, the long-rumoured Avatars system is here, and you'll be able to personalise your on-screen pal - who looks a little like a hi-res Mii - before interacting with pals, and taking your digital representation into new games.

An Endemol backed game show was confirmed, and there will be Live 'Parties', where you can hang-out with virtual pals.

New games abound, Portal: Still Alive the most pleasant surprise. We'll be getting new achievements and levels; while MS also talk up the first 'proper' new Galaga outing in years, called Legions. South Park is also due out in 2009, while will deliver a 360 exclusive sequel to Geometry Wars.

Going so mainstream, it isn't even gaming, Microsoft then announced what could be a major deal with Netflix. This arrangement will double the number of TV and downloads available on Live, and we're told it'll be free to Live subscribers. You'll be able to watch with Live Party pals online, if you're feeling suitably 'lifestyle'.

You're in the Movies, a new mini-game and movie-making title, will also be offered-up soon, coming bundled with a Vision Cam and oodles of appeal. Lips, developed by the team behind Elite Beat Agents is a great-looking new karaoke game, due out this winter - including the ability to sing-along to your own MP3-based tracks; not to mention some very funky microphones.

Getting musical, both Guitar Hero: World Tour and 2 took to the stage to compare exclusivity deals, before it it emerged that Rock Band 2 will be Xbox 360 'exclusive'.

With the clock ticking, CEO Yoichi Wada was given a warm welcome, and chatted about the firm's 360 RPGs, before casually letting slip what could be the biggest news of the day: namely that Final Fantasy XIII will be available on the from launch day one. Cue angry raving from fans.

The conference done, we were left in no doubt that Microsoft are serious about their assault on the market, and the Wii, while the firm also seem confident they can battle the PS3 on the western front. But wasn't even mentioned, the long-speculated motion controller never emerged, leaving us wondering if MS could have more up their sleeve, still.

More from us, live from E3, once we've revived ourselves with industrial-strength caffeine products.

By Luke Guttridge