3:45 pm - "So what's the most dramatic thing we could do to take Live to the next level? " Connect users. Consider that there are 230 miilion Windows gamers and 1 billion game ready cellphones." Announces Live Anywhere, will be built into the Windows Vista.

3:46 pm - Live Anywhere will provide cross-platform possibilities. Just scratiching the surface of mobile gaming. "Start a game on Xbox, continue it on your phone. There are games that will work that way."

3:51 pm - Henson is starting game of Shadowrun on Xbox. He is automatically signed into Xbox Live; looks at friends list: can see friends on Xbox 360, mobile, and PC. "One gamertag no matter what the platform is ... of course I will be able to real time voice chat while we are playing cross-platform."

3:53 pm - Shadowrun demo: "Avenger" starts up Shadowrun and pulls up his friends list. He can see his friends connected to their mobile phones, computers, and so on. Avenger sends an invite to his friend "Major Nelson." Switch video feeds to Major Nelson. We see the invite pop up on Windows Vista, almost like an email notification popup. Major Nelson then compares profiles (insert slick, transparent UI here!) and decides to jump into Shadowrun with his buddy Avenger. Now get this: one of them's using the Xbox 360, one's using a Windows Vista PC. Finally, we will settle the ages-old debate about which control mechanism (mouse & keyboard or console controller) is superior for FPS control.

3:54 pm - Buy content once, available on all platofrms. Buy Zuma on Xbox 360 and have access to it on mobile phone -- one Marketplace. Gamercard integrated into mobile phone.

3:55 pm - New demo: From a Motorola cell phone, Avenger pulls up his friends list and notices that Major Nelson has sent him a message. In thise case, it's a car that's been sent from Major Nelson for use in Forza Motorsport. Avenger modifies the car with a Windows Vista application (applying an Xbox 360 logo to it). User-generated content for real -- but how will the company keep less clean content from showing up on the hoods of Forza Motorsport cars? "Racing on Xbox 360, editing on Windows Vista, and tweaking on the mobile phone."