According to an MTV Source, the XBox 360 is getting a waggle controller of it's own by the end of the year!!!! According to this source, Microsoft has been working on a waggle controller since last August. Details are sketchy of course, but if this is true, and I believe it is, Nintendo could be in trouble. I believe what gamers have wanted since the Wii was released, is a console with next-gen graphics and a waggle controller (see my Wii Too entry).
Microsoft's implementation of waggle will differ from Nintendo's in that the XBox 360 will have a wand, but not a nunchuck attachment. Additionally, the XBox 360's wand will have an analog stick instead of the D-Pad configuration chosen for the Wii (learn a lesson here Nintendo). It will be interesting to see how developers will adapt first person shooters to this new control scheme without some sort of secondary controller for movement.
Read the details here.

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