The first of three big keynote speeches kicked off last night with Microsoft stepping into the spotlight and what a night it was too!

E3 2008 opened with Microsoft enthusing that its Xbox could “deliver to everyone” and after a bit of willy-waving, where it took the opportunity to boast that, in terms of the install base, the Xbox 360 is currently 5 million units ahead of the PS3 in the US, we were treated to some great game demos and trailers, as well as confirmation of a whole host of great new features, including a whole new GUI!

The likes of Peter Molyneux of Lionhead and Cliff Bleszinski form Epic showcased some of the major games we can look forward to, including Fable II , Gears of War 2 , Resident Evil 5 , and some exclusive GTA IV episodes . It was also confirmed that the once-exclusive Playstation series, Final Fantasy,will be heading to Xbox 360 in the form of Final Fantasy XIII. In terms of new titles, we were hoping to hear from Ensemble studios and the rumoured new Halo project, entitled Halo Blue , but there wasn’t even a mention. Nevertheless, the line-up of show-stopping games was impressive and we did get to see more of the superb looking real-time strategy game, Halo Wars .

Microsoft also showed off its music titles, including its Singstar rival, LIPS , and it also revealed the complete and comprehensive track-listing for Rock Band 2, which includes the likes of Bob Dylan and The Red Hot Chilli Peppers.

Microsoft also highlighted its commitment to the casual gaming audience, with the announcement of Xbox LIVE Primetime , the next evolution in game shows slated for Xbox LIVE this Autumn. They’ll also be a new avatar system and community channel, allowing gamers to create unique personalities, chat online and share photos and a new range of casual games will allow users to bring their avatars into the games.

Microsoft also announced a significant partnership deal with Netflix , the US-based largest online DVD rental company in the world, which will allow Xbox 360 gold subscribers to stream movies to their Xbox 360's for free! There was also more good news fro movie fans with news that NBC Universal has also struck a deal with the Big M, which will see its catalogue of content, including the hit TV show Heroes, made available for download shortly.

It’s been the most impressive E3 showing from Microsoft in recent years and an exciting presentation for the E3 crowds. It’s Nintendo’s and Sony's turns tonight, but both are going to have to have pull something special out of the bag to live up this performance.

Be sure to check out our full E3 2008 coverage