Faceplate accessories were one of the big customization features that Microsoft pushed for the Xbox 360 at first, but the feature has largely been ignored and the new smaller Xbox 360 doesn’t feature a detachable faceplate. As it turns out, the feature didn’t end up being the hit Microsoft thought it would be.
“We don’t ever create an accessory with the intent of having it fail,” said Microsoft Director of global marketing Albert Penello. “The idea wasn’t bad… people used to put faceplates on their cell phones. Rewind five years, faceplates were what everybody wanted to do.”
“[It] turned out nobody bought it. So [we stopped] making them,” he noted. “We killed that one pretty quickly.”
Source: Official Xbox Magazine