Personally I don't think it is too real. If it is, it is incomplete. I know Peter M will show off his new game and I'm pretty sure that full body motion control or something a long the lines is going to be announced due to previous rumors from different sources and even an image.
However, they left out a couple of games I'm pretty positive are going to be announced or shown off there. Forza 3 is a big game and it has been unofficially announced multiple times. Mass Effect 2 has been announced I think would show off something at E3. And I know Rare has some new stuff to announce at E3.
Mass Effect, Forza 3, Splinter Cell: Conviction, new Rare Games, new Lionhead game, Lost Planet 2, and All Points Bulletin would be a pretty solid line up except we know about most of those games already.
In conclusion I'm going to have to say this just doesn't seem big enough of a show for Microsoft. Perhaps parts of it is true but I don't think they are going to make their b
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