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I'll give you an example...

I play halo 3 actively with friends. I met a guy at work and told him to come voer and we can play rockband or something "mainstream".

He came over last weekend and i was playing halo at the time so I told him to join in and party up so we can play together. (I had a 48 hour xbox live trial card lying around)

He has an xbox 360 now and is probably teabagging people as we speak.

This is the way mocrosoft gets in to the mainstream. Not with the arcade sku... He got the pro unit as he needs to hard drive to store the halo 3 maps on.