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MS will almost certainly attempt to rebrand their console much in the same way as Sony did, and attempt to recreate it's thunder. That much was obvious after PS3 slim sales numbers started to flow in.

I don't think it will have quite the same level of success, (ie it wont reach PS3 slim numbers) but it does have Natal going for it, and possibly a much bigger marketing push from MS.

I'm not on the bandwagon of Natal (or Move) roping in huge amounts of casuals and catapulting sales, but we'll  have to wait and see. I don't think I've ever been this excited for an E3.