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I'd say E3 is more important for Microsoft tbh. It's only a matter of time before the PS4 has twice the installed userbase of the One (the One is overtracked on here imo, Microsoft's silence on sales as opposed to shipments speaks volumes).

Titanfall hasn't saved the Xbox One, and I can't see their price cut and dropping Kinect doing a lot of good either. They've gone from having the least powerful machine for more money to the least powerful for the same amount of money. It isn't enough. And if Sony announce a small ($50) price cut of their own at E3 then Microsoft are pretty screwed.