During Microsoft’s yearly CES keynote, the company announced that they would be bringing a host of Fox programming to Xbox 360, demoed the interactive Sesame Street TV, and announced Kinect for PC.

Soon gamers will be able to watch a host of News Corporations programming through an app on their Xbox 360. This catalogue includes stations like Fox News, Wall Street Journal, and IGN and will include shows like Family Guy, The Simpson, Bones, Fringe, and a lot of crappy news. Expect this app to this 360’s sometime later this year.

This completely unbiased news source then watched Microsoft demo an interactive Sesame Street experience that they will be rolling out for 360. Children, and their parents, will be able to watch a catalog of Sesame Street content that has been tailored for the Xbox 360 and Kinect. We watched a child use motion controls to help Grover put coconuts back into a box. Children will also be able to enter the trippy kaleidoscope that is Elmo’s world where they can interact with nearby objects, fling monkeys, and send the moon spinning in the sky. Basically it looks like the craziest sensual experience a kid will have until they enter high school and start “experimenting” with the kids their parents warned them about.

Finally Microsoft announced that Kinect would be coming to PC’s in February, but we don’t have a lot of details yet on what games Microsoft will be bringing along for the ride. All in all, it sounds like Microsoft has had a fairly good year, expanding their total sales of Xbox 360s to 88 million worldwide while racking up nearly 18 million Kinect in sales.

Sadly, no news regarding Microsoft’s next console, but that was kind of a long shot anyway.