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Isn't it cute? They still think can salvage this.
I don't know what makes them look worse: the idea that they're implementing these ideas or the fact that they let Phil Harrison run around shouting worst case scenarios to the gaming public (or how about the fact that they only have "potential scenarios" for a product they're releasing in less than 6 months).
This is the most transparent damage control I've seen from Microsoft since that Crimson Map Pack debacle.