Meanwhile, Sony's PSP Go, and their prototype motion sensor device, and Nintendo's Wii Motion Plus were nowhere to be found. They're newsworthy for gamers, but for the mainstream, they're not so interesting.
If you haven't heard of Project Natal yet, here's some videos from E3:
The key now for Microsoft is to ride the momentum they've gained by showing Project Natal and having it released by the holidays of this year. No release date was mentioned during E3 itself, so this is a highly unlikely possibility; however, it really is the best time to reinvigorate the Xbox brand by having the new device bundled with every console as standard equipment by Christmas 2009.
I also wonder if this technology will eventually be part of later versions of Windows...? It seems to have a lot of potential applications outside of gaming.