This sounds like a typical Microsoft move, their answer to everything. That's how they killed Netscape, just giving IE away for free and gaining all the market share. Luckily, game quality is a much bigger factor than console price in the console wars, so even if they gave away the xbox for free, I doubt they would put any other console out of business (at least I hope not). Incidentally, this is why everyone is suing Microsoft, for some pretty ruthless sales practices.