Day 1 of E3 2009 — full of press conferences from Electronic Arts, Ubisoft, and the big press event from Microsoft earlier this morning. Having spent the day taking in what each of these groups had to offer, we’ve got a little bit of judgment to pass now. Sure, it’s early, but here are some thoughts coming out of the first day…

Based purely on what’s been shown today, and assuming things go to plan:

The Sure-fire Big Winner: Xbox Live

Direct download capability for 1080p movies and Xbox 360 games; an expanded Netflix lineup; Facebook, Last.fm and Twitter tie-ins to come in the fall; and a whole host of exclusive downloads and DLC content for games coming this year. That $50 a year spent on an Xbox Live gold account keeps looking better and better, and regardless how the games turn out, what you’ll be able to do with the system grows and grows.

Most Important Announcement: Microsoft’s Project Natal

It's waggle, Jim, but not how we're used to: Microsoft's Project Natal could well be the biggest announcement at E3 2009, but we won't know for sure for years.

It's waggle, Jim, but not how we're used to: Microsoft's Project Natal could well be the biggest announcement at E3 2009.

We knew it was coming. It may even have been shown a year ago, before Microsoft acquired the company responsible for the technology. But actually seeing Project Natal — Microsoft’s code name for its controller-less motion control device — was very stunning. Sure, some of the tech demos displayed (a ball kicking/punching/heading game, motion to control the Xbox dashboard) were a bit hokey…but they showed a level of motion-recognition that was very tight and reactive. The big deal was Lionhead Studios (publishers of Fable 2, Black and White and many other games) and the tech demo they created where players could interact with a schoolboy named Milo. To say it encroached on the uncanny valley is an understatement; if it’s what the video demonstration billed it to be, it’s less a game and more interacting with a legitimate AI character. Absolutely stunning.

To say that Microsoft could capitalize on the market the Nintendo Wii has pioneered while also pushing the boundaries of what’s possible as an interactive activity with Project Natal is an understatement. The potential is there; whether it comes to fruition in the final form will be interesting to see.

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