Microsoft yesterday made a raft of announcements trumpeting what it calls 'Smart Living in the Digital Decade'.

The software giant pointed to developments in its consumer software and services offerings, including the availability of its Xbox Live service across Europe.

The online gaming service will launch today in the UK, France, Germany, Spain, Italy, Sweden, Holland and Belgium.

To mark the arrival of the service Microsoft said retailers will begin selling Xbox Live Starter Kits for the "special introductory price" of €59.99, or £39.99.

They will be available at stores across the UK - including HMV, Toys 'R' Us and Comet - through a partnership with internet service provider BTopenworld.

Windows XP Media Center Edition was also demonstrated as part of the 'Smart Living' announcement.

The operating system is designed to turn PCs into media centres offering remote control of digital entertainment including live television, video recording, music, photos, videos and DVDs.

Windows XP Media Center was originally launched in the US in October 2002.

"It's the software that brings the connected home to life," said Keith White, Microsoft senior marketing director.

"Microsoft and its industry partners are transforming the way Europeans live, work and play in the Digital Decade.

"The delivery of these products we are announcing today into the European marketplace solidifies our commitment here."

Microsoft also flagged the availability in five European markets of Windows-powered Smart Displays from Philips and ViewSonic.

For UK consumers these products will be sold through Dixons Store Group and Amazon.co.uk.

The company also announced that Creative Technology will be building a Portable Media Player based on the Media2Go platform.