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I'm not surprised or upset by this but I do see this as a very bad mistake by Microsoft ...

The fact that it is an add-on that is being released well after the Wii has become (super) popular, on a system which is too expensive and has too little content for the kind of "Blue-Ocean" gamer they're trying to attract. What this means is Newton add-on is potentially going to be one of those public disasters which brings the image of a brand way down.