(Update: Photos) Xbox Unveils Entertainment Experiences That Put Everyone Center...

(Update: Photos) Xbox Unveils Entertainment Experiences That Put Everyone
Center Stage

Microsoft rewrites the rules on fun with controller-free entertainment,
Facebook for your TV, plus instant on 1080p HD streaming video.

LOS ANGELES, June 1 /PRNewswire-FirstCall/ -- The future of home entertainment
has a new name: Xbox 360. Today, Microsoft Corp. opened the Electronic
Entertainment Expo (E3) with a historic Xbox 360 briefing that rocked,
tweeted, revved and awakened the world to a new era of fun and entertainment.
In addition to premiering 10 exclusive new games, revolutionizing the way we
watch TV, and making it easier than ever to connect to friends, Xbox also
welcomed visionary filmmaker Steven Spielberg to introduce "Project Natal" and
controller-free gaming.

To view the Multimedia News Release, go to:
http://www.prnewswire.com/mnr/xbox360/38497/

(Photo: http://www.newscom.com/cgi-bin/prnh/20090601/NY25901 )
(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )

"Today with cultural visionaries at our side and controller-free gaming on our
horizon, Xbox 360 authored a new page in home entertainment history," said Don
Mattrick, senior vice president for the Interactive Entertainment Business at
Microsoft. "For us, this E3 is about breaking down barriers -- between
generations, between games and entertainment, and most important, between
video game players and everyone else -- in a way that only Xbox 360 can."

During its briefing, Microsoft showed why Xbox 360 continues to defy industry
sales trends. First: A lineup of blockbuster games to ignite every passion,
including "Forza Motorsport 3," "Alan Wake," "Halo 3: ODST" and "The Beatles:
Rock Band." Next? A host of groundbreaking Xbox LIVE services, from instant on
1080p HD streaming movies and television to Facebook and Last.fm tailor-made
for your TV. And rounding it all out, "Project Natal," a whole new way to
play, no controller required.

"Project Natal": No Strings (or Controllers) Attached
Unveiled for the first time to the public was "Project Natal," pronounced
"nuh-tall" and a code name for a revolutionary new way to play, no controller
required. See a ball? Kick it, hit it, trap it or catch it. If you know how to
move your hands, shake your hips or speak, you and your friends can jump into
the fun. The only experience needed is life experience.

Compatible with any Xbox 360 system, the "Project Natal" sensor is the world's
first to combine an RGB camera, depth sensor, multi-array microphone and
custom processor running proprietary software all in one device. Unlike 2-D
cameras and controllers, "Project Natal" tracks your full body movement in
3-D, while responding to commands, directions and even a shift of emotion in
your voice.

In addition, unlike other devices, the "Project Natal" sensor is not
light-dependent. It can recognize you just by looking at your face, and it
doesn't just react to key words but understands what you're saying. Call a
play in a football game, and players will actually respond. Want to log onto
Xbox LIVE? Simply step in front of the sensor.

"The next step in interactive entertainment is to make the controller
disappear," said Steven Spielberg, visionary director and producer. "With
'Project Natal,' we'll see games that bring everyone together through
technology that actually recognizes us."
The Best of the Internet, Custom-Made for Your TV
Groove, party or connect with a friend. Xbox LIVE, the world's largest social
network on TV, today announced that Facebook and Last.fm would be tailor-made
for your TV, only on Xbox 360. Microsoft also announced Xbox LIVE Party for
movies, which allows movie experiences to be shared -- on the couch or across
the country over Xbox LIVE in supported movies.

"We are always asking ourselves how to make the TV more social," said John
Schappert, corporate vice president of Interactive Entertainment LIVE,
Software and Studios at Microsoft. "By bringing Facebook, Last.fm and Xbox
LIVE Party for movies and TV shows to Xbox LIVE, we're not only extending the
walls of your living room beyond your home to your friends in different
corners of the world, we're creating the definitive social network, uniting
more than 200 million people to share status updates, pictures, thoughts on
music and the world's best online gaming experience."

The addition of Facebook to Xbox LIVE means friends are always connected,
anytime, anywhere -- from virtually any couch. But updating your status and
sharing photos won't be the only things you can do. Using Facebook Connect,
you can share your greatest moments in gaming by posting updates and
screenshots from supported games directly to Facebook. Don't let your moment
of glory fade away -- make sure everyone sees it with Facebook Connect,
starting with the future version of the premier EA SPORTS golf franchise
"Tiger Woods PGA TOUR(R)."

A first for TV, Last.fm(1), part of the CBS Interactive Music Group, will give
Xbox LIVE subscribers access to millions of songs streaming through Xbox 360
to the best speakers in the house. Xbox LIVE subscribers will be able to
create their own free, personalized radio stations and listen to them with
friends in the living room or across the country.

Xbox 360 also solidified its place as one of the leading social entertainment
networks by announcing Xbox LIVE Party for movies. Go to the cinema with your
friends whether you are sitting on the same couch or in living rooms across
the country. Starting this year, you can share a virtual theater, see your
avatar (a virtual you) on the screen, all while you listen to each other laugh
and cry at the movie through voice chat on Xbox LIVE. With movie parties, the
only thing you can't share is the popcorn.
1080p HD in an Instant
Continuing a pioneering effort that began with the introduction of the
industry's first video marketplace in November 2006 and broke new ground with
the announcement of the first live TV straight from a gaming console last week
in the U.K., Microsoft today announced that Xbox would deliver yet another
first-to-the-world: instant on 1080p movies and TV with 5.1 surround sound --
direct to consoles connected to compatible HD TVs through the Xbox LIVE social
entertainment network.

Starting this fall, a broad selection of movies and TV shows from Zune video
on Xbox 360 will be available to start and stream instantly, in the highest
video quality and at the push of a button.(2) No discs, no waiting for
downloads and no delays. Get the selection of a video megastore, the best
video clarity available and the convenience of on-demand, only on Xbox 360.

In addition, Microsoft announced it will more than double the number of
markets where Xbox LIVE offers its TV shows and movies, growing from eight to
18, by adding Australia, Austria, Belgium, Denmark, Finland, Netherlands, New
Zealand, Norway, Sweden and Switzerland. Xbox LIVE members in these markets
will have access to instant on 1080p video. New Xbox LIVE Video Marketplace
advancements also came for the U.S., U.K. and Ireland, specifically:

-- More choices with Netflix. Watch movies instantly streamed from
Netflix.(3) Browse and add selections to your instant Queue -- right
on
your TV with your Xbox 360. Plus now with Xbox LIVE Party, you can
watch
and share supported movies with up to seven friends on Xbox LIVE.
Debating between comedy and horror? Recommend your favorites to
friends
and see your virtual you as an avatar on the silver screen.

-- Live TV with BSkyB Ltd. The Xbox LIVE commitment to providing the best
global entertainment gains momentum with its newest partner, Sky. Now,
for the first time, watch live or on-demand TV from Sky on Xbox 360,
including Sky Sports. Never miss a moment of your favorite live TV
shows, sports, movies and family-friendly entertainment across the
U.K.
and Ireland on Xbox LIVE. You can even share your favorites with up to
seven friends in an Xbox LIVE Party.

Games for Everyone
Get behind the steering wheel of the sleek Audi R8. Rock out with your friends
to the latest music and party games. Discover a new chapter set in the iconic
universe of "Halo." Xbox 360 has the most celebrated, highly anticipated games
and experiences in the industry. With more than 1,000 titles to date, there's
more than just one for you.

-- Get behind the wheel. Hit the straightaway in more than 400 cars on
the
world's most beautiful tracks in the definitive racing game for
this console generation, "Forza Motorsport 3." Or get your
avatar in the driver's seat as you tear up the track with your
friends in "Joy Ride."
-- Adrenaline-rushing exclusives. Xbox 360 is your top destination for
the
biggest exclusives this year and beyond, including "Halo 3:
ODST," "Crackdown 2," "Alan Wake," "Tom
Clancy's Splinter Cell Conviction(TM)" and "Left 4 Dead
2."
-- Tap into your inner musician. Xbox 360 continues to be the preferred
venue for the music games you love. Discover the magic of music and
The
Beatles with "The Beatles: Rock Band" or start a spontaneous
singing party with "Lips: Number One Hits."

-- The best blockbuster experiences. Third-party games play better on
Xbox
360. Pairing must-have titles such as this year's blockbuster from
Infinity Ward, "Modern Warfare 2" with Xbox LIVE, Xbox 360
offers more friends to play with and an exclusive collection of Game
Add-ons.

About Xbox 360
Xbox 360 is a premier video game and entertainment system. It is home to the
best and broadest games as well as the largest on-demand library of standard-
and high-definition movies and TV shows connected to the television -- with
music coming this fall. The digital center of the living room, Xbox 360 blends
unbeatable content with the largest online social network of 20 million
members on Xbox LIVE to create a limitless entertainment experience that can
be shared at home or across the globe. With the addition of currently
code-named "Project Natal," Xbox 360 will forever transform social gaming and
entertainment with a whole new way to play -- no controller required. More
information about "Project Natal" and Xbox 360 can be found online at
http://www.xbox.com/projectnatal and http://www.xbox.com.

About Xbox LIVE
Xbox LIVE is the largest gaming and entertainment network and delivers more
entertainment than any device connected to the television, including movies,
TV, music and games. Xbox LIVE is also the only entertainment service to
provide instant on 1080p streaming HD video from Zune video. With an active
community of more than 20 million people across 26 countries, Xbox LIVE lets
you play the best games, enjoy the largest on-demand library and, coming soon,
listen to millions of songs -- all while connecting to friends anytime. An
Xbox LIVE Gold membership provides you with exclusive benefits and premium
access to entertainment from the top studios and services, all in one place.
More information about Xbox LIVE can be found online at
http://www.xbox.com/live.

About Microsoft
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software,
services and solutions that help people and businesses realize their full
potential.

1. Xbox LIVE Gold Membership required.
2. Users will need a 1080p-compatible HD TV, an HDMI cable and broadband
speeds greater than 8 Mbps for instant viewing at 1080p and 5.1 surround
sound.
3. Netflix is available in the U.S. only.

SOURCE Microsoft Corp.

Press only, Jeremy Bartram, +1-206-268-2234, jeremy.bartram@edelman.com, or
Hannah Wong, +1-206-268-2290, hannah.wong@edelman.com, both of Edelman; or for
more information, broadcast media only, Nate Murphy, Edelman, +1-206-268-2236,
nate.murphy@edelman.com