Next up was a trailer for the upcoming Forza 2, a racing title that will be released during the 2006 holiday season. The trailer emphasized the franchise's meticulously detailed damage models, as well as the insane amount of customization options available to players. We found out that there will be over 300 vehicles for players to tool around town in, as well as the fact that up to 12 players will be able to take part in races on Xbox Live. One of the best announcements of the press conference was the upcoming release of several wireless accessories, including a racing wheel and headset. We'll also be seeing an EyeToy-like camera peripheral that will allow gamers to put their faces on characters in games, as well as video chat with their friends on Xbox Live.

Echoing his sentiments from previous years, Moore talked a bit about the company's modest ambitions in the Japanese market. While it's clear that Microsoft has little-to-no chance of grabbing very much market share from Sony and Nintendo, they're working hard to bring Japanese gamers exclusive titles from some of the country's biggest and best developers. Hironobu Sakaguchi was introduced to a round of applause, and we got a chance to check out a trailer for Blue Dragon, an RPG that tells the tale of a young boy and his shape-shifting buddies. While we didn't get to see them in action, Moore also mentioned the upcoming Ninety-Nine Nights and Team Ninja's Dead or Alive Xtreme 2.
Next up was a presentation on Xbox Live Marketplace, another small piece of Microsoft's next-gen puzzle. In creating Marketplace, the company was attempting to "open the gates to true digitally distributed content," and many gamers would agree that they've done an admirable job so far. However, they've got grand plans for the future, especially after seeing that pre-orders for Fight Night Round 3 increased fivefold after the demo was released on Live. The amount of available content will be increasing, and Moore announced a Gears of War docudrama that will kick off on Xbox Live and conclude on MTV.