SANTA MONICA, Calif. - Microsoft is counting on the biggest weapon in its video-game arsenal, Halo 3, to boost the Xbox 360's fortunes after the company's warranty problems.

At the company's event Tuesday on the eve of the E3 video game industry convention, Bungie Studios showed the first live footage from the second sequel in the best-selling sci-fi combat series.

Halo 3, which arrives in stores Sept. 25, will come in three flavors: a $60 standard edition; $70 for a limited edition with a bonus making-of disc and art book; and $130 for a limited "Legendary" edition that comes in a Spartan military helmet case.