UPDATE: This offer is limited to Microsoft Retail Stores in the US, Canada, and Puerto Rico, Microsoft has confirmed in an e-mail to Eurogamer.The company clarified that it also accepts all smart phones, blackberries, and PCs as part of its Recycle for Rewards program where it offers store credit for trade-ins. It's only the PS3 and Xbox 360 that are part of this particular promotion, though.
Microsoft noted when it comes to trade-ins "value is determined by age of the product, condition of the product and current market value of the particular model. Customers will receive a Microsoft Store gift card for the determined value of their items."
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