Rumor: New $199 Xbox 360 Bundle SKU, Now with Waggle

Ok, everyone, let me just pass out your grains of salt for this one. Remember The Matrix, and "there is no spoon?" Well, in The Xbox, "there is no motion controller." At least not yet.

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.

According to the source, Microsoft will be positioning the Arcade bundle to be in direct competition with the Wii, meaning that the marketing push behind it will focus on family friendly entertainment. With family oriented games on the packaging, the Arcade console will come packaged with the traditional Arcade goodies (512MB memory card, etc.), the new Fall update pre-loaded as well as a motion controller and a few motion controlled mini games developed by Rare. That's right, a motion controller! Supposedly, the motion controller will work with all 360 consoles and will even be sold separately, bundled with an even more expansive list of mini motion controlled games. This new $199 Xbox 360 Arcade bundle is said to release Holiday 2008. -- Joystiq

At this rate, that would have to be one hell of a stealthy launch for a motion controller. Under the cover of night, perhaps, with ads printed in invisible ink? I don't know; while I can easily see Microsoft not laying their cards out on a price cut, keeping a motion controller secret until it's shipped just seems... unlikely.

But hey, I can be proven wrong. I won't really complain about it if it happens, either. But still, just seems a tad strange.