The following games were shown, some of which really showing off the benefits of a Blu-Ray drive and the Cell processor:

1. Ratchet & Clank Future: Tools of Destruction, SCEA
Amazing videos:
http://www.gametrailers.com/gamepage.php?id=4572

2. Uncharted: Drakes Fortune, SCEA

Great videos:
http://www.gametrailers.com/gamepage.php?id=2654

3. Heavenly Sword, SCEA

Looking very good:
http://www.gametrailers.com/gamepage.php?id=1679

4. SingStar, SCEA
5. SOCOM: Confrontation, SCEA
6. LAIR, SCEA
7. Folklore, SCEA
8. NBA ‘08, SCEA
9. MLB 07 The Show, SCEA
10. THE EYE OF JUDGMENT, SCEA
11. Home, SCEA
12. LittleBigPlanet, SCEA
13. Elder Scrolls IV: Oblivion, Bethesda Softworks
14. The BIGS, 2K Sports
15. Hellboy, Konami
16. Devil May Cry IV, Capcom
17. Stranglehold, Midway
18. Spider-Man 3, Activision, Inc.
19. Ninja Gaiden Sigma, Tecmo
20. TimeShift, Sierra Entertainment
21. Tom Clancy’s Rainbow Six Vegas, Ubisoft Entertainment
22. Tom Clancy’s GRAW 2, Ubisoft Entertainment
23. Surf's Up, Ubisoft Entertainment
24. Harry Potter and the Order of the Phoenix, Electronic Arts
25. Pirates of the Caribbean At World’s End, Disney Interactive
26. SEGA Rally Revo, SEGA
27. Dynasty Warriors:GUNDAM, NAMCO BANDAI Games
28. Conan, THQ
29. Ratatouille, THQ
30. The Darkness, 2KGames
31. Fantastic Four: Rise of the Silver Surfer, 2KGames

Playstation Network
1. PAIN, SCEA
2. Calling All Cars, SCEA
3. Warhawk, SCEA
4. High Velocity Bowling, SCEA
5. High Stakes on the Vegas Strip: Poker Edition, SOE

Some good looking new screenshots:

Heavenly Sword:
http://www.worthplaying.com/sections.php?op=viewarticle&artid=1608

Warhawk:
http://www.worthplaying.com/sections.php?op=viewarticle&artid=1606

Uncharted:
http://www.worthplaying.com/sections.php?op=viewarticle&artid=1605

Ratchet & Clank Future: Tools of Destruction:
http://www.worthplaying.com/sections.php?op=viewarticle&artid=1609

http://www.thegamefeed.com/news-a235610bcab33d9d182be36d35fb83e1.html

Also interesting:

Three Speech write up of SCEE press day:

http://threespeech.com/blog/?p=414 

Kinda surprising there was nothing shown for Metal Gear Solid 4, Final Fantasy 13, Gran Turismo 5, and especially Killzone 2, isn't it supposed to come out later this year?

http://www.psu.com/node/11030 heres a complete list of all known trailers and gameplay videos.

Peter Dille: "I think all the stuff you can have playable at E3. And then the one we’ve been holding back on is Killzone, so it’s a good reason for you to come to E3, because we’ll have some updates on that. "

http://www.gameinformer.com/News/Story/200705/N07.0518.1518.01359.htm

HS ,LAIR and UNCHARTED have surely killed other games.

some games were not shown intentionally and according to Dille e3 would be owned by Killzone footage.

i think at the end of 2007 ps3 games themselves would unlock in a fierce fight for the top spot.

Lair ,HS and UNCHARTED....OMG !!!!!!!!!!! are  fu******* amazing.

skeptics should ckeck the YAHOO DIRECT VIDEO feed of UNCHARTED (which has obviously exceeded the trailer shown at e3 last year).

GT is otherwise a good place for the incredible direct feed video of HS

yeah, I like that those major games took a back seat to a lot of the unproven new IPs, showing that there are a lot of unique games coming this year.  E3 will showcase those other games. 

are these games $600 good. i like my PS3 but my friends want one but its too expenisive for them which they are now wanting a 360 because of GTA 4 and Madden 08

Uncharted will be one of this years biggest games.

Yeah, it mixes some Tomb Raider and Prince of Persia with Gears of War and throws in some Naughty Dog flavor.  It might look as good as Gears too, if not better... (I said might, please don't start a thread about how Sony fanboys are overhyping Uncharted now).