After an introduction by Don Mattrick Microsoft moved on to give us an introduction of some of the entertainment features and the new Kinect features (that allows for instant voice control as you're switching between applications, games, TV and other forms of entertainment).
Yusuf Mehdi came on stage to demo some of these features and also spent time making a Skype call and pimping the new Star Trek movie. As Mehdi spent ten minutes or so going into details on these features, showing off the new dashboard and its features.
It became evident that Microsoft hopes to take on Smart TVs head on with the features they have.