Wow. Um... this doesn't strike them as a bad idea at all, does it?
Seriously, reactions to the 150$ tag were VERY negative just about everywhere I went online when that number first came around. Do they honestly have no one on staff to look at that and say 'Uh, people DON'T want to pay this value'.
And their statement that 'folks won't need to buy extra controllers' rings hollow to me. How many people, casual gamers mind you and not the hardcore crowd, are going to factor in number of controllers when buying a system? They're going to look at two consoles; both use motion control, both come with a free game that makes use of it and the games look similar, but one costs 100$ more. Sale for the Wii, then.
I just... who does this target? Established 360 owners don't seem to overwhelmingly have an interest and the pricetag won't help that, hardcore audiences seem adamantly oppossed to it and Microsoft didn't help that any by outrightly saying it's not going to appeal to them, and casual owners aren't being given enough to make it seem worthwhile to them over the Wii and its pricepoint. That leaves NO ONE. Well, maybe some REALLY harrrrrrdcore Microsoft fans who are willing to invest no matter what. But that's hardly a winning strategy of target marketing for a product like this that you spent so much time and money on. Now, if this was Apple, different story... those guys would buy a no-function plastic orb if Steve Jobs promoted it at the end of one of his keynotes.