You guys do know that the programing language in XNA is C#, not C++ or C. (For those of you don't know C# is Microsoft crappier, more restricted version of C and C++ combined). The development companies get the REAL 360 development kit, which lets them write in C++. So that means that because M$ can control your code and it's libraries, they can control how greatly you can access the 360's resources.
This means:
- Limited Hard disk capabilities (probably can only store savegames in a certain predisposed directory)
- Limited everything else (CPU, RAM, hardware flashing, ubs devices, etc.)