Photos: What's in Microsoft's Christmas stocking this year?

First up was a selection of peripherals that Microsoft will be leading its Christmas gadget charge with.

Among the new additions to Microsoft's hardware range are an entry-level mouse, the Wireless Mobile Mouse 1000 and a mid-level cousin, the 3000v2.

Microsoft also showed off a new webcam, the HD-5000. As its name suggests, the device is designed for high-definition transmissions.

Photo credit: Jo Best/silicon.com

Another peripheral joining the Microsoft line-up is this thin Arc keyboard.

Photo credit: Jo Best/silicon.com

The first Windows Phone 7 handsets are expected to land around Christmas this year, with devices from Acer, Asus, HP, HTC, LG, Samsung and Sony Ericsson all promised.

Photo credit: Jo Best/silicon.com

The mobiles will come with the de rigueur social network integration - updates from users across platforms including Facebook and Windows Live (as seen on the previous page) - as well as a mobile version of Office programs (seen here).

Photo credit: Jo Best/silicon.com

Microsoft also demoed its Windows Live Essentials suite beta, which was launched late last month.

Shown here is one part of Essentials, Windows Live Messenger. The instant messaging software brings together updates from contacts posting on other social networks including Facebook, LinkedIn and MySpace.

Windows Live Messenger will also prioritise updates from favourite friends, pushing their social media utterings to the top.

Photo credit: Jo Best/silicon.com

The recently launched beta also supports HD video chat for the first time.

Photo credit: Jo Best/silicon.com

Windows Live Essentials also comes with Photo Gallery, a photo editing package.

Photo Gallery includes facial recognition, whereby once a user has tagged someone in a photo, the software will attempt to identify the individual in other pictures.

Photo credit: Jo Best/silicon.com

It also sports a feature that can allow a user to compare multiple shots of the same situation and swap out preferred elements to create a better photo.

Here, Photo Gallery picks alternative views of the red-headed woman from three separate but similar pictures - shown on the right - allowing the user to add their preferred shot of the woman into the photo.

Photo credit: Jo Best/silicon.com

Also on show in Microsoft's Santa's grotto were some of the games that its Kinect system - which allows Xbox players to control a game without using a controller - will launch with.

Kinect, previously known as Project Natal uses a video camera and depth sensors to capture a user's movements, and then uses software to translate those movements and gestures into system commands.

For example, a football title would require the user to kick a ball by standing and booting the air in front of them, with the movements translated into gameplay on screen.

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Rather than holding a steering wheel controller, this game - Kinect Joy Ride - has players grip an imaginary steering wheel by holding their hands out in front of them, moving them left or right to steer.

Photo credit: Jo Best/silicon.com

This game meanwhile, Dance Central, has players recreate the dance moves shown on screen.

Both titles will be available when Kinect launches this November.

Photo credit: Jo Best/silicon.com