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Their strategy will work if the price is right and if there are some killer apps (Wii Sports equivalent) available at launch. Lots of people thought Wii Fit and the balance board would fail, but it's sold millions and over here in the UK at least, people were paying £100+ for them due to shortages, so it shows that accessories like this can sell. I guess the main issue is the different demographics of the Wii and 360 (I know there is some overlap, but they're definitely not aimed at the same market), but with well priced bundles and a decent selection of launch titles, I can see this really taking off.