Sony's conference just owned...whether or not everything was all realtime(and apparently only Sony's and Epic's stuff were...but what about the FFVII demo?), it definitely piqued interest and had "WOW" factor.
I've downloaded the Microsoft conference stream, but haven't watched it yet to comment.
I wasn't too disappointed with Nintendo's conference because it was already stated by Reggie that this year's E3 wouldn't be Revolution's coming out party. And this year's E3 isn't just about a system coming out sometime next year...they still have current systems to support, like the Gamecube, GBA, and DS. It was good to hear about Mario Kart DS Online...and the new Zelda trailer was sexy. The Nintendogs thing was crap(not the game, just the presentation), and the "Oh my, my dog is putting the shiggy on you Tina" stuff was bleh. Seeing the Revolution(and i'm glad that's the Official name) was good, and Iwata said that the final design could be even smaller. I would have liked to hear the system specs, but oh well.
In terms of the titled question, i'd say Microsoft has the most damage control to dispense. Here's the thing, Nintendo is seen as the underdog anyway, so they really don't have all that much to prove in terms of trying to outmuscle everybody. Microsoft is the one trying to take on Sony head-on...XBOX was built on being the most powerful system...and now obviously it won't be because they're using a different methodology(effeciency, profitability, etc), and they still have to try to garner much more Japanese developer support. Nintendo's underdog status let's it be the wildcard/black sheep. Revolution could WOW the shit out of everyone, but it doesn't have to...if it does, all the better, if it doesn't, it wouldn't be unexpected.
I'm just pissed for not seeing any big surprises for my beloved PSP :lol 
How many years have we been lied to now?
