It plugs into the bottom of the controller, like the headset, but acts like a keyboard. it just came out and i was prob going to pick one up. makes chatting easier...plus, i can see some games really incorporating this extra hardware.
Kind of like the highly under used Xbox Vision Camera. some games might incorporate a chat pad feature. matybe use it as extra buttons. like say you are playing a Mech game...it would be great to have extra buttons...one to use for boosters, one more missiles, etc.