He'll announce an easy-to-use game construction kit, called Kodu, that will allow every-day Xbox users to design their own games. Due in March, it will let people trade these games with other Xbox users, but not sell them for money, Beilinson said.

Bach will also unveil two new games in Microsoft's hugely popular Halo franchise, including the first Halo game rated for a teen audience.

As in previous years, attempts at comedy are probably also on the menu. Past years have included pre-recorded skits in which Gates dressed up as Harry Potter and, last year, one where he was packing up his desk and moping over his last day at work.

With the outlook so bleak for the economy, the consumer electronics industry here may appreciate all the cheer it can get.