The big news, in my estimation, is the announcement that 'Grand Theft Auto 4' will be ready for the Xbox 360 at the same time it's ready for the PS3, October 16, 2007. This erases the advantage that Sony once held in getting the best-selling franchise months before it came to the Xbox. To add some salt to the wounds, it was also announced that there will be exclusive content for the Xbox 360 version of the game in the form of, "downloadable, episodic content through Xbox Live."
In addition to next-gen games, Microsoft announced a slew of new Xbox Live Arcade games including 'Lumines Live' (the popular PSP game, with music video content from Warner Bros.), 'Frogger,' 'Contra,' (yes, the up, up, down, down, left, right, left, right, b, a, start will still work), 'Mortal Kombat 3,' 'Sonic,' and many other games that I wasted a good chunk of my childhood playing.
There were also some sales numbers that the execs at MS were happy to report. By the end of June, MS will have sold over 5 million Xbox 360s. This the fastest that any console has reached this mark, with a nice graph showing how they surpassed the PSOne and PS2. They then compared it to the standard bearer of electronic hippness, the iPod, announcing that they have sold more at this point than did the iPod.
Going further, by the time the PS3 launches, MS expects to have sold 10 million X360s, a lead "that we only dreamed about a year ago," said Gates. In addtion, they expect to have 6 million Xbox Live users by next year (no date given). Currently there are about 3 million users. They also bragged that they have upped their attach rate (the amount of Live users/console) of Xbox Live to 57%, saying that it's as essential to plug your Xbox into Live as it is your computer into the internet (kind of the same thing, really).
All in all, Microsoft didn't "wow" me, but they didn't have to. They have their next-gen machine out and working. Sales of it are brisk, the software titles they showed were very impressive, and Xbox Live will continue to be more popular. How Sony will catch up, I just don't know.