From the perspective of the Wii, the XBOX 360 does not stand a chance of making an effective stand. The barriers to imitation of the Wii's full strategy are simply too high for MS to actually tackle with the 360 as their competitive source, meaning that the best we will see for the $200 360 is a system with interface components of the Wii's success, but none of the values. As Nintendo has learned the hard way repeatedly in the last decade, components of success do not guarantee success.
Ultimately, it won't make a significant difference either way if the $200 360 model has a motion controller or not. If it does not, it will just be a cost-superior alternative to the PS3 (which the 360 already is anyway, meaning no lasting impact will be had). If it does feature the "Vapor Wand", it will be a value-wise inferior alternative to the Wii.
Sky Render - Sanity is for the weak.
