At the E3 Microsoft keynote, MS announced their new hardware motion control add-on, the Kinect. It's basically full-body motion (and voice) control without the need of any other controllers. Check out Engadget's liveblog (plus a video feed) because the stuff they are doing with it are beyond what the Wii has done:
Also announced, a new Xbox 360 Slim with built-in WiFi N and a 250GB hard drive:
Wouldn't it be great if they put a Blu-Ray player in there?