I was amazed when I heard the Xbox 360 would support iPods out of the box. But, of course, it has to. Embrace AND extend.
One of the big take-aways for me was hard drives vs. optical. Everyone knows what a pain it is to burn discs. They're the floppy drive / sneaker net of this era, only being used if there are no other alternatives. So of course Microsoft bypasses them with a portable hard drive.
But basically, click through to Mitch's overview of how the XBox is going to kick the PS3's butt.
Here's how Microsoft will win the Game Wars by next summer, before the Playstation 3 ships in volume, using a wireless handheld Xbox that plays games, movies and TV stored on the detachable hard drives announced in the Xbox 360—and, building on .NET, Microsoft will turn both the game console and the portable game system into full-fledged productivity systems. RatcliffeBlog -- Mitch's Open Notebook: A bone-jarring Ah-ha moment: How Microsoft wins the Game Wars