E3 2011 starts next week and that means all kinds of announcements, new games, new products, and possibly even some crushed hopes. We’ve put together a few guides for what to expect from the Big 3 console-makers, and even opened up a contest for you to enter to win some prizes.  Up next, we’ll take a look at what Microsoft will be showcasing, as well as what they will probably be showing off (fingers crossed).

For Microsoft, it’s all about Kinect, Gears of War 3, and Windows Phone 7.  But, rest assured that we’ll see some great core game reveals as well.

Xbox 360

Hardware

While we don’t expect Microsoft to be revealing their next console for another year or so, we can expect them to bolster their support of their existing hardware.  Last month, Microsoft acquired Skype for $8.5 billion.  Along with this acquisition, Microsoft has promised to use the technology to improve chat with the Xbox/Kinect and Windows Phone.

Could this upcoming Skype-related update involve a new NXE?  Hopefully they at least take this opportunity to increase the friends limit on Xbox Live.

In March, analyst Michael Pachter has predicted that Microft will reduce the cost of the core Xbox 360 unit around E3.  We’ll find out this week if he was right on this one.  It’s arguable that the current generation of consoles is starting to be on its last legs; a price cut would make sense.

Games

E3 2011 will showcase multiple high-profile games from successful franchises: Mass Effect 3, Modern Warfare 3, Forza 4, Gears of War 3, and Metal Gear Solid: Rising.  As far as Mass Effect 3 and Modern Warfare 3 go, we can expect some timed exclusives for both these franchises to come to the Xbox 360.  Modern Warfare 3 maps are almost a given, but perhaps Call of Duty Elite will make an appearance as well, integrated into Xbox Live.

We can also expect to see the next title in one of Microsoft Game Studio’s biggest franchises, Halo.  It’s been rumored that 343 Studios, the developer that’s been put in charge of the Halo franchise since Bungie’s departure from Microsoft, has been working on a remake of Halo: Combat Evolved.  Since Microsoft has expressed interest in releasing Halo games more frequently, E3 would be the time to show off this remake, if the rumors are true.  Also recently, Fable: The Journey was hinted at. Could this be a new game?

Kinect

Kinect has proven to be relatively successful for Microsoft, and we can expect Microsoft to push some content to supplement Ubisoft’s Child of Eden.  Although we probably won’t be seeing Kinect support for Mass Effect 3 (thank God), we can expect to see other developers support Kinect (Forza 4 on the Kinect would make sense).

New games that are expected are Kinect Fun Labs, Kinect Sports Season 2, and Dance Central 2, all of which will likely be demoed on stage or in video form.

We may also see more Kinect support in terms of dashboard apps like ESPN and Netflix, especially with rumors of FOX joining the media frenzy and something called “Xbox Diamond” popping up on radars — and Microsoft now branding the Xbox as a home entertainment device as opposed to gaming — to suggest that media delivery will be a huge new push for the company.

Windows Phone 7

It will also be interesting to see if Microsoft plans on bringing the Window Phone 7 to the show to combat the Sony Ericsson Xperia Play.  If so, we can expect to see more Xbox integration and some new games for the device.

Editorial Opinion

This will be an important E3 for Microsoft as they will have to compete with Nintendo’s Project Cafe.  They will also want to capitalize on Sony’s recent media image given the PSN security blunders of this spring.  They will probably want to appear as the gaming industry’s “good sun” in the wake of Sony’s security issues.

Since we can probably expect the next group of consoles to be announced at the next E3s, it’s time for Microsoft to “bring the noise” with the end of the 360’s tenure.  The biggest games that will help mar the end of the 360’s lifespan will be trilogy finales (Gears of War 3 and Mass Effect 3).  It will also be important to boost Kinect support to keep Kinect owners happy.