The service, which communicates with the Xbox 360, allows users to send media between devices and brings supplemental information to tablets and smartphones.
Users will be able to play media on multiple devices simultaneously, or move content they were viewing on a tablet over to a television screen, while the mobile device starts serving out relevant information about the movie or TV show.
SmartGlass will also be used for gaming, allowing users to create plays on their tablets while playing Madden, or arrange multiplayer battles in Halo.
Microsoft also confirmed that its Internet Explorer software is coming to the Xbox 360. SmartGlass will enable users to browse the internet on their television screens using their smartphones to interact with websites.
A specific release date for SmartGlass is yet to be announced, though it is expected to land within the next year.
> Read our live blog of Microsoft's E3 2012 conference