Microsoft brought a smile to everyones faces today, announcing an Live exclusive version of Portal, called 'Still Alive'.

Players will be getting new levels and achievements, as part of Valve's offering.

The "first true sequel" to arcade favourite Galaga will also be released this year, Redmond revealed in their E3 briefing, also letting slip that a South Park Arcade title will debut in 2009.

Wait, there's more, set to deliver an Arcade exclusive Geometry Wars sequel, as rumoured earlier today.

Lastly, MS will team up with to offer Live users free access to the firm's service's catalogue. We're told the number of films available to Live users will double as part of the new deal, and you'll even be able to share and view your films with your Live Party - ushered in with the Avatar system.

More on this as we get it.

By Luke Guttridge