Pretty much the same thing as I said about Nintendo. After watching MS' press conference and how it turned out especially Project Natal if it was just them in the conference and Microsoft all they would need to do now is show up.
Gamewise Microsoft didn't really show anything that wasn't known about before. Sony hasn't shown the totally awesome games that we know are coming out probably before the end of the year.
The best two games Microsoft showed were Modern Warfare 2 (will be on PS3 too) and Final Fantasy (the best version will be on PS3) and the PS3 has those games as well as boatload of other games that are just as good.
As far as having big time exclusives, Microsoft totally missed the boat on that this year unlike almost every other year.
