It's a rumor that appears to be very possible. We've all heard the rumors of Microsoft and their motion sensing controller, just as well as we've heard what they have to say about Nintendo's Wii. Xbox360Fanboy says they've heard another rumor, from a source said to be close to Microsoft, about a possible holiday arcade bundle that would include the motion sensing controller. Nothing of this sort was announced at E3, or any of the other recent game conventions, which tends to make this seem like another hoax. However, with Microsoft intending to undercut Nintendo's Wii with a cheaper bundle, and the upcoming Xbox 360 user interface changes, this could be their next step in getting in on what Nintendo has been selling so well.

"Take it for what it's worth, but we've received a tip from a source close to Microsoft's marketing department who has shed some light on the Xbox 360 price cuts that are rumored to be going down in a few weeks time. More specifically, the $199 Xbox 360 Arcade bundle."

KernelKush via xbox360fanboy.com »