10:48 - Peter Molyneux of Lionhead enters. Fable II is finished! It is a highly interactive RPG that features a very innovative multiplayer component devoid of lobbies. Players on your friends list just jump in and out of your game. The game will be available in October 2008.
10:54 - Cliff Blezinski of Epic. Gears of War 2: Rendezvous with Death trailer is highly stylized; looks fun. Blezinski says he's going to give us a little demo. What's that in his hand? A red controller? Maybe a GoW 2 bundle is coming our way. He starts playing…huge shudder…the demo just restarted…oops! Taking out waves of Locust, both the room to room combat and battlefield mechanics look solid. Brumaks can be used as mounts. Available November 7, 2008.
11:01 - Don Mattrick takes the stage again. The headliners seem to be over. People will buy $48 billion worth of gaming goods next year. That makes interactive entertainment the #1 form of media. Xbox LIVE had 6 million members at last year's show. There are now 12 million active users. $1 billion have been spent on Xbox LIVE downloads to date.
11:05 - Mattrick promises that 360 will outsell PS3 (no mention of Wii); a bold prediction. Movies and TV shows make up 1/3rd of all content downloaded thus far. As such, NBC (including Sci-Fi and USA) along with Universal have joined with Microsoft to deliver new content. MGM and Constantine have been added for Europe.
11:08 - John Shappert of Microsoft takes the stage. New community features, avatars, and a dashboard redesign are the highlights. The new dashboard seems to be a mix between Windows Vista and the Nintendo Wii's channel idea. The avatars are stylistic yet realistic versions of players created by Rare. LIVE Parties are pretty sweet! Players can now share photos, watch movies, and play games together in a much more seamless way.
11:13 - Xbox LIVE Primetime will feature game show-like community opportunities where people can win real prizes. Uno: Rush, Geometry Wars 2: Retro Evolved (with co-op), Galaga Legions, Portal: Still Alive, and South Park will all be coming to XBLA as exclusives. Community-generated games will be launched.
11:21 - Netflix and Microsoft are coming together to bring people a far greater, at-home movie watching experience.
11:24 - Shane Kim of Microsoft takes the stage. He shows off both Banjo-Kazooie: Nuts and Bolts as well as Viva Piñata: Trouble in Paradise. Both games look very good. These are the more casual titles Mattrick initially alluded to. Banjo has some great user-created elements, while Viva Piñata will make use of scan-able trading cards for character expansion via the LIVE Vision Camera.