Microsoft's conference at E3 just concluded, with the announcement of Final Fantasy XII, plus Banjo Kazooie news from Rare and no sign of a motion-sensing controller. We recap inside...

Showing off demos of Fallout 3, Gears of War 2, Fable 2 and Resident Evil 5, Microsoft began their conference with some impressive gameplay footage. Resi 5 showed off online co-operative gameplay, with Chris Redfield helped out by an African woman, both of whom are part of a new zombie-fighting group.

The 360 dashboard will be seeing an update this Autumn with a new Channel interface, and the inclusion of Mii-like avatars, designed by Rare.

Also by Rare was new sequels Banjo Kazooie: Nuts & Bolts, and Viva Pinata: Trouble in Paradise, and the news that the original Banjo will be available to download from Xbox Live Arcade.

Also detailed were Portal: Still Alive for Xbox Live Arcade, plus You're in the Movies, a new title using the Xbox's camera to cut and paste yourself Eyetoy-style into your own custom movie. Also shown was a new Singstar style title, dubiously named Lips, tested out live on stage by singer Duffy who seemed to go out-of-sync with her own recording.

Interestingly, it was claimed that Microsoft were now are ready to predict that Xbox 360 "will sell more than the Playstation 3 this generation."

The majority of the conference was dedicated to mass-appeal games, and announcements of new media partners such as reality TV gurus Endemol, plus NBC and Universal, who will provide online gaming content for Live.

The conference concluded with the surprise announcement of an Xbox 360 version of Final Fantasy XIII from Square-Enix. After much speculation, there was no mention of the widely rumoured motion-sensing Xbox controller.

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