It's not desperate - but remember that MS is one of the industries great copiers. They see something that works and if they feel it would work for them they copy it.
Most companies copy to some degree or other MS just does it more overtly and more aggresively.
I think its likely to be a wasted effort though - the PS3 has already shown that an HD console with motion sensing and some games doesn't really impact people buying a Wii.
So I think that while it may expand 360 appeal somewhat it is way late to impact the market perception of the Wii as the console to get for family fun using interactive controls.
Try to be reasonable... its easier than you think...












