1. Xbox 360 hard drive lets you add videos, photos, and music. Windows streaming allows music, movies, and videos to be streamed from PC.
2. Microsoft goes online with little lag (nothing is lag free unless you're host, even in PSN) and establishes a superior connection where you can be friends with anyone you meet (add them as your friend mid-game), view what games your friend s are playing, and jump in to any game your friends are playing.
3. LIVE store allows you to download demos, videos, HD movie rentals, television shows, add-ons, and arcade games. Play arcade games with you friends, use your content offline, or login to any Xbox 360 and show your friends your content.
4. Microsoft creates Xbox LIVE, an online community where you can chat, video message, text message, and game with you friends or strangers, all within a fast 2D interface. No need to get bombared with ads or wander aimlessly around a 3D lobby, uncertain of your friends online status or if you have message because of the clunky PS3 interface.
  Notices inform you of what's going on - you can access messages or accept invitations at any time, even mid-game.
5. Halo 3 brings gamers together to fight to be the best, build clans, and share videos of their victory with bleeding edge graphics, sound, and physics. XNA enables anyone to get their foot in the door developing content for the Xbox 360.
6. Vision cam allows chatting, pictures, et cetera - both in and out of game.
None of this requires "teh cell"
The only thing Sony is doing that Microsoft isn't is making more of the wildly unpopular EyeToy games. These absolutely *sucked* on the PS2, I don't see things changing when using video control on the PS3.
As for the other features "putting you in the game" - the Vision cam is already doing this in sports games (mapping your face to a player), XBLA, and Xbox LIVE matches in most games.
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Oh, and to further burst your bubble - E3 is dead, and has been dead since they redesigned the format last year. It's going to essentially be the equivelant of a wet fart this year, we're not going to see the massive Sony booth this year.Â
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