It's a rumor, but it sure is a juicy one. According to an Xbox360Fanboy source close to Microsoft PR, the $200 Xbox 360 Arcade (the SKU with no hard drive) will be sold in a bundle with a motion controller and a few motiony games during the coming holiday season. The possibility is certainly not all that crazy, as we've seen plenty of evidence supporting the Xbox 360 "Newton" motion controller, and everyone wants a piece of the Wii's big, hungry fanbase. Our guess is that if this rumor pans out we'll hear more around the Tokyo Game Show in October. [Xbox360Fanboy]
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My spidey senses say "Doubtful"