So Microsoft held their press conference this morning @ E3, they have announced:

Alan Wake (Q2 2010)
Motion / depth sensing camera prototype demonstrated
Last FM on NXE for Xbox Live Gold users
Facebook / Twitter integration into NXE
New Metal Gear Solid
Various XBLA titles
Zune Store (New Zealand included!!!!!)
Halo: Reach
Halo ODST
Forza 3
Splinter Cell Convictio
Left for Dead 2 (360 and PC)
Crackdown 2
Exclusive Beatles music on Xbox Live
Full retail 360 games available for download via Xbox Live
Live TV streaming over 360 (US only I think)

Just on the Motion / depth sensing camera prototype, I'll let this video do the explaining.

If that takes off, Nintendo better start thinking quickly.