IMHO The Xbox wouldnt made such an impact on the consolemarket if it would still do what MS had in mind when they released it. First to strike my mind is: Some better grafix and unlimited savegames on HDD.
Most people wouldnt bother when there was PS2 with 200 games before MS started to sell there machine and for that hefty price (600$ here in Sweden).
The brakethrough where when you had the chanse to install an 200GB HDD and fill it to the max with emus of every oldschool gamestation ever created (Atari, Gameboy, NES, MasterSystem, SNES, Megadrive, C64, Amiga). And if that wasnt enough, the most used music and movie formats with your own custome subtitles!!!
Thats what made MS to gain marketshares. And now they put another year to secure so that people cant do that with the 360. Sure they loose an hell of alot of money when people "lease" games
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But there would be no reason for Sony to even release the PS3
So for the sake of MS I hope they made some lame protection so that I can throw out my old Xbox and I will gladly buy the 360.