It was a strategic bluff at MS.
The 360 looks more like a last gen system now because the Wii and PS3 have motion sensing.
MS would came up with a motion sensing controller before launch if Sony showed their new controller at E3 2005 because MS would think they were behind the Wii and PS3.
You know - I was thinking about that the other day. "Why are all these people abandoning xb360 and rushing to ps3 these days?" And then it hit me. They aren't.