You hit the nail on the head. Xbox is pretty big in Canada...perhaps because the whole country being wired for broadband internet helps...I think it's all because of the marketing done here. I don't know if Ryan Mugford is still heading that operation up here, but he did an excellent job for the first couple years of the Xbox in Canada.
Their tied in with large big box retailers like Future Shop and Best Buy Canada...and this move doesn't surprise me.