-- Microsoft launched a major effort at the E3 conference to turn the Xbox 360 videogame console into an entertainment hub that spans well beyond videogames. The company will add access to Last.fm, to go live this fall, free of charge for Xbox Live Gold members. The move will allow users to stream the music service through the console. Other service additions include Facebook, Twitter, and live TV from British broadcaster Sky in the UK. (Ars)

-- Also at E3, Microsoft unveiled a new motion-sensing camera called Natal that allows gamers to interact with games and other services through body movements. While rumors of the camera were greeted with derision prior to the conference, it won over skeptics after Microsoft's demonstration and has others wondering how Nintendo can recapture the momentum. (Joystiq )

-- Activision began hyping its DJ Hero game at E3, throwing a party the featured performances by Travis Barker and DJ AM. (CNET)

-- This afternoon it was Sony's turn to show off it's plans for the future at E3. It led off, to no-one's surprise, with formal introduction of the PSP Go - the much-rumored follow up to the PlayStation Portable. The device is a slimmed down version of the handheld gaming unit - 50 percent smaller-with 16 GB of memory for $250. There's no music service at this time, but there are music capabilities. An application called "Sense Me" analyzes the music users transfer into the device and can recommend playlists with the songs based on various moods they select. Games and other content like video can be downloaded from the PlayStation Store directly to the device via WiFi, or by connecting to the PlayStation3 console. Combined with an application program that lets other companies create service for the device, and a music service certainly could follow. It will be available for sale on Oct. 1. In other Sony news, the company introduced a prototype motion-control device along the lines of the Wii system.

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