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IMHO ...

It's a tactic by MS to show off to devs, shareholders that the console is gaining a following. Several thousand folks are on it - at a chance to win prizes or MS points. And when you think about how much time you spend on the game, and what you can win, it could be looked at as a waste of time. You have nada to show for it. You get hit with ads during breaks - and if you are awesome, you get an Arcade title. If you aren't so lucky, you don't even get achievements.

We're getting pimped, folks. It's all about the numbers.