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Anyone saying desperation from M$ I dont think understands casual gamers. Arcade pack is cheaper than wii in Europe. If M$ do a bunch of Sports title like Wii sports, some pure puzzle games and the like they may draw in some casual gamers. I think it shows smartness on M$ part. They could let Rare take on the sort of First/secondy party support from it.

If it makes an extra 20-30 thousand sales a week, it's a good move.