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Before you know it, they'll be selling actual instruments as peripherals
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That's already in the works. In early 2011 Fender is releasing a Squier guitar for use in Pro Mode. You can also plug it into an amp and play it as a real guitar.
http://www.squierguitars.com/news/in...ay_article=144
They're also releasing a MIDI adapter so you can use a real keyboard.