I haven't seen a bigger streak of screw-ups... ever.
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Soo.. They were running on SDK setups instead of actual consoles. Only surprise here is the SDKs using notably different hardware than the actual machine will use. Still, nothing that hasn't happened before on a convention, and certainly not the worst screw-up when it comes to the xbone.
edit: misread the article, thanks to lack of coffee. MS didn't use SDKs. More deceptive, still not the biggest screw-up
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Or maybe it wasn't ready yet so they emulated it on a PC?
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Really?
They were demonstrating the Xbone. On a Windows 7 OS - why not 8? Do they not think 8 is good enough?
Even worse: The Xbone is supposed to be using an modified Radeon 7790 card. They were demo-ing it on nVidia's high-end GPU (GTX 780), nothing like 'comparable' hardware. Yes it made everything look pretty, but you'd expect that from a ~$600 GPU.
For comparison, the 7790 is about 1 quarter the price of the GTX 780. That's not even a fair comparison of the power.
TL;DR: MS tried to hood-wink everyone into thinking their Xbone works superbly well, which it should do if it was running on a GTX 780. But not necessarily anywhere near as well on the 7790.
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Turns out at E3 XBOne's were nothing more than PCs with GeForce 780 (kinda funny how much MS 'trust' products of company that makes their consoles; so much they go to their competition).
Source
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