Err...
I was there and they did not do this "trick" at E3 in 2005. Microsoft's showing at E3 2005 was considered underwhelming as they showed actual games that were works in progress.
COD2, for example, looked much better when it was actually released than it did at E3.
Up against Sony's 1080p/60fps (yes, in 2005!), super-detailed videos of KZ2, Motorstorm, Unreal Tournament 3, and so on, the 360 LOOKED criminally underpowered. In 2005, it looked like Sony had won the generation before it had even begun :)







