In a way it does. Someone has to pay for the Cinemaster license and the remote. Nintendo is doing the same exact thing to reduce costs. The N-Cube is capable of playing DVD's but they're not selling it that way to reduce costs by keeping their machine a true game console, not a multi-media...
I think this is actually a good thing for the X-Box. Look at the PS2... $299 retail (if you can find one) plus $30 (?) for the remote. By making the one thing that a true game console doesn't really need optional, they can sell the unit at a much more agressive price. Think of this... X-Box...
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