Microsoft held its annual Xbox 360 press conference this morning at the Los Angeles Convention Center to kick off E3. I arrived about 30 minutes after the conference already started because of a late flight but apprently I didn't miss too much.

Already announced games like Gears of War 2, Fable 2, Fallout 3, and Resident Evil 5 were all quickly showcased.So I really didn't miss too much stuff since most of the info has been out there for quite some time.

I walk in when Don Mattrick, Senior Vice President of some Xbox 360 department is on stage bragging on the what the Xbox 360 has been doing. Of course they've sold more consoles than the PS3 and Mattrickboldly announces that the Xbox 360 WILL outsell the PS3 this generartion. He didn't mention the Nintendo Wii because the Wii has already surpassed 360 console sales. However, Mattrick is quick to mention that games on the Xbox 360 are outselling the Wii and PS3 combined.

Mattrick also made a big announcement in regards to a partnership with NBC/Universal. NBC-owned TV shows like The Office, Heroes, Battlestar Galatica, Monk and others will be available for download via Xbox Live. Universal films like the Bourne Supremacy, 12 Monkeys, Chronicles of Riddick and others will also be available on Xbox Live. MGM films will also be available for download.

John Schappert, head of Xbox Live services and software took the stage next and announced an entire overhaul of Xbox Live taking place this fall. The dashboard will not only get an entire new look, but every member will be able to create avatars, you know, those cool little characters you get make that look like you in games like The Sims and Second Life? There will also be a community channel where you and 7 other friends can connect, chat, play games, share photos and in a deal with Netflix, even watch movies together! The Netflix deal allows Xbox Live members with a Netflix subscription to access the Netflix library on Xbox Live. Yes, you can download all those movies, watch them, and invite your friends to watch them with you.

Games for Xbox Live that were announced included Uno Rush, Galaga Legion, Portal: Still Alive, Geometry Wars 2, and a South Park game. They also announced a sequel to last year's movie trivia game, Scene It? called Box Office Smash and a new movie game called You're in The Movies which comes with a camera. You record silly movements like swatting wasps or dancing to music and the game incoporates them into a silly b-movie. Looks fun.

The fellas behind the music games Rock Band 2 and Guitar Hero: World Tour came out and pumped their games. Nothing new was announced except that Rock Band 2 will have AC/DC and Bob Dylan songs which is a first, and that songs from the original Rock Band will be transferrable to the new game. Oh yeah, Guns N Roses are also adding a song from the long-awaited album, Chinese Democracy. Guitar Hero: World Tour will be compatible with a new wireless drum set with cymbals and a new guitar. R.E.M. will also make available three songs from their upcoming album for download and Metallica will offer its entire new album for download for Guitar Hero: World Tour.

Not to be outdone, Microsoft announced a new game called LIPS. It's a karaoke game where you can plug in your iPod or Zune into your Xbox 360 and lip sync to your own music. British recording artist Duffy then trotted out and performed her song, "Mercy", which will also be featured in the game.

Finally Square Enix prez Yoicha Wada came out and let us know that games like Last Remnant, Star Ocean and Infinite Undiscovery are set for Xbox 360 in the next year, which we already knew. After his talk and a little bit of footage about these games, he walks of stage. Don Mattrick returned basically wrapping up the conference, but was interrupted by Wada to show footage from the highly anticipated Final Fantasy XIII.

That was about it... nothing too spectacular, but the revamping of Xbox Live ought to be fun this fall.  

Stay tuned for more from E3...