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

Pachter believes the media missed the significance of this news, which he believes positions the Xbox 360 as a computer for the lounge - helping give Microsoft 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 Apple will have a long way to go in order to catch up. By far, this was the most important announcement of E3," Pachter offers.