Microsoft's announcement that 360 is to be integrated with Facebook, Last.fm and Twitter was "far and away the most important" news of E3, Wedbush Morgan's Michael Pachter's told Gamasutra.
The analyst said "that the media completely missed its importance," adding that it signals a new direction for the machine, that of a "functioning computer" in the living room.
Pachter also said that the move "gives the company a huge jump start on a hopeful Apple, which has as yet to make a dent in sales of its AppleTV (intended for the same purpose).
"Microsoft appears to me to understand that it can leverage its 30 million installed base advantage if it moves quickly, and Apple will have a long way to go in order to catch up. By far, this was the most important announcement of E3."