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kn said:
This is classic Microsoft. They don't really innovate much. They just copy and dominate. The interesting point here is that I've played first person shooters on my Wii and I have to admit that the Wii controller is the best I've ever used for shooters. This could be great... Wii-like controller but with next-gen horsepower for great graphics.

There is a big problem, though... Add-on peripherals have a serious problem gaining market share. In order for this to work, MS would have to sell the controller and include some games and patches for existing games. If they released a wii-sports like game and included it along with a patch to make Gears, the Halo Trilogy, COD4, Bioshock, and Mass Effect work with the controller, I suspect they could sell a boat-load of them. They would also have to provide a robust tool-kit to allow developers to use with games in development. Finally, they should provide a financial incentive to every game manufacturer to release a patch to make the controller work.

If MS reaches at least 50% saturation in the console install-base they WILL attract developers.

Heck, I'd buy one if they did all above. Knowing MS, however, with their propensity to nickel and dime people to death, they'll include a small and simple game with it and leave it to third parties to develop software. There won't be an install base so third parties won't spend the time or effort to do it (or do it right) and it will fail.

 Un-Bolded , what ms should do.

Bold , what ms will do.