Microsoft's E3 will likely be remembered for the debut of Kinect. Whether or not you're a fan of dance and party games, the unit boasts some impressive technology. Video Kinect looks to be a very promising step forward in video chat. During Microsoft's E3 Press Briefing, a Microsoft employee named Laura did an impressive live demo of this new functionality onstage. Using the Kinect, she initiated a chat with her sister, Kristen, in Dallas, Texas. Nearly all of the commands were done via voice (including a simple "End chat" when the demo was over). Once they were both in the chat together, they were able to choose from a variety of content to view together while chatting. They decided on a clip of the upcoming fantasy flick The Last Airbender. During the clip, they were able to converse freely while watching, emulating the "living room" experience that Microsoft is pushing with Kinect.

On the bottom of the screen, the other options for entertainment were visible: Microsoft's search engine Bing, news, sports, TV, movies, and music. Most if not all of the entertainment available on Xbox Live should be available for live chat purposes.

Even more impressive was the demonstration of the Kinect's camera tracking. Laura had Kristen lean left and right outside of the frame of the camera. Surprisingly, the Kinect's camera's instantly panned accordingly, keeping Kristen in the frame perfectly.

In addition to the Xbox Live community, Video Kinect will also be compatible with the millions of MSN Live Messenger users worldwide, creating an an instantly huge customer base for the service.