Wedbush Morgan analyst has told Gamasutra (thanks VG247) that the biggest news out of E3 wasn't Natal, Go or XIV. Rather, it was word that and are on the way to the 360.

Pachter believes the media missed the significance of this news, which he believes positions the as a computer for the lounge - helping give the edge over Apple.

"Microsoft appears to me to understand that it can leverage its 30 million installed base advantage if it moves quickly, and will have a long way to go in order to catch up. By far, this was the most important announcement of E3," Pachter offers.

More on this soon.

By Luke Guttridge

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