From joystiq:
11:10 am PT -- We see Marcus Phoenix being rendered with better specular lighting. High density crowds are new -- we see a massive crowd of Locusts flocking through a Gears of War environment.
11:11 am PT -- Dynamic Fluid effects look... liquidy. Marcus Phoenix splashes through a pool to demonstrate
11:12 am PT -- Matinee improvements -- it's what power the cutscene in Gears of War
11:13 am PT -- Better structural degradation allows concrete to break apart in an explosion. Marcus kills an innocent concrete pillar with a Torque bow.
11:14 am PT -- John Schappert's back. Um, excuse us, but weren't you guys supposed to announce Gears of War 2? Over 1,000 games on Xbox 360 by the end of 2008, promises Schappert. And that excludes Xbox Live Community Games
