Game-consoles used to be something for teenagers who didn't have enough money to buy a real PC. The specs and videos that have been released on the Xbox360 are awesome. Now the question becomes: why doesn't my PC look like that? Why doesn't my PC perform like that?
Imagine Microsoft moving into the mainstream PC-market and combining soft- and hardware into something like "WinBox2006 (tm)".
The result will probably be a decades worth of lawsuits. (Although nobody seems to mind Apple doing just that)
Check out the videos at: ftp://ftp.planet.nl/pub/planet/games/multimedia/xbox360vid.zip and http://www.xbox360.com