A reader sent us another image from Microsoft's Xbox 360 booth, where they are demoing real-time games powered by the Xbox 360. You can see in the picture that there is an Xbox 360 viewable through a little slot, implying that the games themselves are running on pre-production consoles, but if you actually come around to the side, you can see two Apple G5 PowerMacs, the development systems for the 360—plus a desktop fan to keep them cooled down.
Scandal? Not really. A bit disingenuous? Totally.