During their E3 press conference, Microsoft announced that they reached an agreement with Disney ABC Domestic Television to make high definition and standard definition feature films from Walt Disney Pictures, Touchstone Pictures, Miramax Films, and Hollywood Pictures available for rent on demand to members of Xbox LIVE in the U.S. A growing catalogue of current and library titles will be available this July with more blockbusters to come.

Microsoft also announced the highly anticipated rollout of the high definition video store on Xbox LIVE Marketplace for customers around the globe. Microsoft will begin bringing content into living rooms throughout Europe and Canada by the end of this year. Currently offering more than 2,100 hours of premium entertainment content from 28 networks and studios, and nearly 500 hours of HD content alone, this puts the U.S. on demand, high definition library for Xbox 360 at more than twice the size of the nearest cable provider.

In addition, Microsoft will be adding several new Xbox LIVE Arcade titles sure to be a hit this summer, including these:

•Bomberman Live.

•Golden Axe.

•Hexic 2.

•Marathon: Durandal.

•Puzzle Quest: Challenge of the Warlords.

•Sonic The Hedgehog.

•Undertow.

European’s were not left out as it was announced availability of the premium Xbox 360 Elite was mentioned and therefore starting Aug. 24 and unveiled several new additions to the Xbox 360 hardware and accessories lineup, all available this holiday season, including these:

•Xbox 360 Halo 3 Special Edition Console. In anticipation of this year’s largest blockbuster gamer launch, Microsoft will offer the Xbox 360 Halo 3 Special Edition console. The console features an authentic Spartan green and gold finish and comes with matching Xbox 360 Wireless Controller, 20GB Hard Drive, Headset, Play & Charge Kit, and exclusive Halo 3 Gamer Pics and Theme available via Xbox LIVE download. Available in September.

•Xbox 360 Messenger Kit. Chatting with friends and family on Xbox LIVE and Windows XP and Windows Vista based PCs can now be done using the Xbox 360 Messenger Kit. This device easily connects to any Xbox 360 controller and provides thumb stroke chat capabilities while maintaining gameplay functionality in one easy to hold device. The Xbox 360 Messenger Kit includes a Chatpad and Xbox 360 Headset.

•Xbox 360 Wireless Controllers available in festive new colors. Gamers can express their identity with new pink, dark blue and light blue Xbox 360 Wireless Controllers.