I'm gonna make a small post on this matter.
The Wii is a social console, it is for households and family. It is for real life connections and as an addition to your life, not a replacement. Natal shows the asymmetries of motivation between Microsoft and Nintendo more than anything I've ever seen.
The media and message boards will gush endlessly about this thing, when it comes to real market situation though it's a totally different story. As far as E3 goes, I'd say Nintendo has lost, but to win what they need to do is explain clearly what their motivations are and how different they are from their competitor's. Also if Natal is playable on the show floor alongside WM+ that could be a huge plus for Nintendo. As a ghost this thing wins, but only then.
We don't know about any of those things yet, but I'd say right at this moment in time the E3 situation is leaning toward the Microsoft side. In terms of market Wii wins. In terms of E3, all bets are off.
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