What does Microsoft have up its sleeve for E3? So far, we’ve been given hints of the New Xbox Experience, which is something like the previous New Xbox Experience, except with live TV, YouTube, and motion control through Kinect.  Although it might seem a little strange to stream in live TV through your Xbox, given that it’s already running on a television, the details are what will make the idea.

So far, details are what we’re missing.

If the system offers shows in a straight-up TV format, it’ll probably crash and burn.  On the other hand, a system that allows players to download whatever entertainment they like, as they want it, could be a very powerful weapon in Microsoft’s arsenal.  For their part, Microsoft is playing coy, saying only, “Consumers will enjoy news, sports and their favorite local channels, all just a voice command away, on Xbox 360.”

That bit about voice commands is what makes this New Xbox Experience really new, and possibly even an experience.  Voice command means Kinect, and all the new services rolling out on the Xbox are being tied to it.  YouTube, a very strong integration of Bing, and the live TV system are all merging together with Kinect to form what might be the next generation of multimedia systems.  The tagline goes a little something like, “TV is better when you are the controller.”

Ever since its debut, Kinect has proven a strange beast.  Although it does have some use as a game controller, a system that runs on gestures and body movement would only work well for a limited genre of games.  Only now, does Kinect seem to be throwing off its shroud and stepping out of the shadows.  The device isn’t all that great for games, but it’s wonderful as a media interface, allowing players to swap through menus, watch shows, and buy content online just using simple gestures and voice commands.  No more will players have to soil their hands with buttons and control sticks to wield the multimedia viewing and shopping experience available on Xbox.

More to the point, without controllers to worry about, your parents might come to see the Xbox as less of a game system, and more of a simple home appliance that lets them enjoy TV, YouTube, and everything that Microsoft can sell them.  This New Xbox Experience could very well open up an entirely new demographic for Microsoft, in much the same way as the Wii did for Nintendo.

That Microsoft is transforming the Xbox into a multimedia system isn’t new, but removing controllers from the equation is.  Controllers are a barrier.  They symbolize gaming consoles, not home appliances.  Controllers require skill to use, with all those buttons and sticks.  By using Kinect to obliterate the controller, Microsoft is removing that barrier, and allowing the Xbox to come into its own as something greater than a game console.  It brings to mind a vision of the Xbox at the heart of a home’s media center.  Not just your home, but anyone’s.  Your parents.  Your grandparents.  An Xbox in every house.  Whether Microsoft can capitalize on this vision remains to be seen, but the New Xbox Experience is a step in that direction.

[Editorial note: Contributed by Nelson Williams of VoxExMachina.com]