1. ESPN.

2. Fitness.

3. Family.

4. Functionality.

5. Price cut.

Broadly they did well. The U.K and the U.S. Especially are gonna eat this up just on the sports alone. So they've got something HUGE for their male 18-30 demographic right there.

Fitness is a huge multibillion dollar industry. Wii Fit is huge, but this takes things in another direction entirely. Theres no reason why it can't tap into untapped parts of the Wii market and besides anything else it'll make some moms happy. "See mom it can do fitness stuff too, its useful.

The family can join in, this is a big bonus. It looks like they have some pretty appealing family games. I say family because you wouldn't let anyone else see you play these games.

The functionality of the Kinect controller essentially doubles the value of the Xbox 360s online and media functionality. Movies/music without touching a controller? Very useful. Especially in light of the fact that some people are intimidated by the controller.

Price cuts are always good. Every time they have introduced a new SKU they cut the price of the old one $50 or so then when thats gone they cut the price of the new SKU to the last price of the old SKU.

Finally someone with some actual dialog to discuss.

1. Is nice and will attract some attention. But, once they realize its after you subscribe to Live for a yearly fee, not so much. Plus, the sports games are not as good as WSR/WS combo. Look closely at the demos, the soccer game and probably others are more like on rail games due to no nunchuk like peice. Probably ok for the volleyball as that will be similar to tennis in wiisports, but the soccer one is crap looking.

2. Is comparable to WiiFitPlus and does have some advantages and some disadvantages. However, Moms are the shoppers primarily and Wii's version is familiar and cheaper. If they already have Wii, it won't sell them. If they don't have either, wii still has the bigger pull primarily due to familiarity.

3. Family, of course. All of these games (especially the dance game) will appeal to family and its nice that its only one device for all. But, this is a small thing that is definitely beaten by Wii's existing library.

4. Functionality. Clearly its the demos. If you pay attention everyone demoning the hand gestures for entertainment kept their hands by their sides while speaking and only raised them when ready to change the item. I see this as a potential annoyance that will hurt it. However, the speaking peice is awesome, so long as others in the room don't screw you up for fun.

5. Price cut. I've said multiple times, a price below $100 for the stand alone or packed in for less than $200 would be a very good move and would dramatically change my outlook on this. The casual consumer is very much price restricted. That mass market won't spend $300 on the base model without a solid packed in game.

Actually, if they sold it with your choice of one of the Kinect games for free, that could tip the iceberg. Then the dance or fitness game could push the demand. As of right now though, its all speculation until MS reveals final layouts.

1. Hasn't stopped massive netflix adoption and the majority with Xbox 360s already have Live so this one has already been answered on past behaviour.

2. I can't really say much about whether it will appeal. Its honestly the best take on a Wii Fit competitor released thus far but its still up in the air whether it'll sell 500k or 5M or 15M. Consider any "Halo killer" There has been only one after many attempts at trying. Its doable but you wouldn't predict it based on past performance.

3. Beaten by quality/quantity, yes. The advantage is that these games are unlike the experience offered by the Wii. The Wii has an accessory for everything whereas this one is just by itself. They didn't show much in the way of titles which could be done on the Wii which was good, they played to their own strengths. The biggest advantage here is novelty, especially showing off to people who may already have a Wii to get them to try something new. In addition to this, the experiences offered did seem to be at the Wii Sports level of polish IMHO.

4. It reconizes faces and voices so cross talk shouldn't be too much of an issue. Not sure about the self gesture noise, but I guess most people who aren't Italians won't gesture every time they speak.

5. I've decided based off this video: http://www.gametrailers.com/video/e3-2010-xbox-360/101403 listen to 2:40, I think he says that the Kinect connecter only comes with the 250GB version. So possibly the price will be $149 entry, $99 Kinect and $299 Elite with Kinect. The two different SKUs are one for the 250GB and one for the standalone. The Xbox 360 slim Arcade may also come without the Wifi since it doesn't have a HDD, maybe.

I think they might just offer Kinect bundled with third party titles in the same box ala Wii Play. You just select which title you'd like the most. I would do it that way anyway.