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The arcade model is simply being dumped off, as it was a failed experiment from MS camp. The motion control is a remnant of a April Fool's Day joke on MTV.com which the MS fans clung onto as their dying hope of the XB360 stopping the Wii.

So what you're left with is a $200 XB360 arcade model, and in limited supplies. It may boost their sales a bit to pass the PS3 for a month or 2, but that's it.