Microsoft revealed its successor to the Xbox 360, dubbed the 'Xbox One'. Unlike Sony's somewhat cagey event, Microsoft showed the hardware that everyone craves to see. The exterior design of the box itself is somewhat uninspired, but no one really cares if their console's case won't win design awards so long as the console provides entertainment.
The Xbox One is going to be bundled with a new and improved Kinect. That was a wise decision to drive adoption of the device by developers. While the Kinect was a successful product, the history of console add-ons shows that it can be difficult for developers to spend precious resources supporting a peripheral that not everyone has. Bundling the Kinect with the Xbox One means that developers won't have to worry about user fragmentation driving their design decisions. It seems as though there is already some backlash due to the fact that the new Kinect is always listening, but honestly folks, 'always listening' is how the Enterprise's computer must have worked. 'Magic' always has a cost.
A new controller was revealed as well, but honestly there isn't much to talk about. It's a refinement of an already fine controller.
By the way, the 'requires an always-on Internet connection' rumors weren't true, strictly speaking. With that said, the system for handling used games is sort of wonky. From some reports, the Xbox One installs the game disk's contents to the internal hard drive. The same disk can be used to install the game onto another user's Xbox One, but apparently this would require activating the content online by paying a fee that is pretty much the at-that-time current retail price.
Games were also talked about, but just like Sony's event there isn't much to mention here. Sequels, folks.
In all, Microsoft did a capable job with its announcement and it looks like the Xbox One will be competitive with the PlayStation 4.