A revamped Xbox 360 designed to store and display high definition video, will go on sale in Europe on August 24th.
The black Elite console has a 120GB hardrive and outputs high definition video through a digital connection.
Microsoft's Shan Kim said that he didn't think that recent reports of faulty X-box 360s would damge future sales.Speaking ahead of the E3 games show he added there were no plans of an Xbox 360 price cut, saying they were "very comfortable with the price". " We are selling the Elite version as fast as we can make them" he said of the black Xbox 360, but was unable to give specific figures.
He said Microsoft felt no need to reduce prices in light of Sony's cut of $100 from the cost of 60GB PS3.
In the US, Xb Lives' Video marketplace more than 2,100 hours of content from 28 networks and studios, with nearly 500 hours of high definition content.
A new trailer of Halo 3 was shown, featuring some of the first video of the single-player campaign in action.
Microsoft also unveiled a " digital short film" made by Neill Blomkamp, who had been earmarked for the stalled Halo movie, in conjuction with Peter Jackson's special wizards Workshop and Origami digital.
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