Well, bearing in mind we've seen Sony's offering, it's very easy to appraise. If a company the size of Microsoft can't beat what Sony have announced, somethings gone seriously wrong.
IMO, Sony are the only people that have lost the plot - they're aiming at Indie games and sharing videos etc... how incredibly uninteresting.
The gaming press (and public) were mostly very impressed with Sony's announcement though.
The lack of any actual hardware to show off was silly, and won't be a mistake that MS will make I imagine. The games line-up so far was solid enough, and like MS, they'll be announcing games at E3 so we'll get a bigger picture of what they'll both be offering.
I personally don't care who beats who, and I'm not sure why anyone would. I buy a console for the games and features, not to fly a flag as a loyal member of a fanboy brigade.