A year from now, it will be interesting to see whether Microsoft does the obvious and tries to move some version of xBox technology onto business desktops. After a decade of messing around, thin client computing is almost inevitable for businesses. Not only are existing computers too darned hard to service, support, and keep virus-free, but all the new legal requirements for protecting and preserving corporate data (Sarbanes Oxley, HIPAA, GLBA, FERC and so many others) pretty much demand some central data repository.
The xBox 360 would fit nicely into this niche, sold as a stripped-down model without the optical drive. Imagine the adrenalin rush in that Redmond conference room: "Hey, we can save money by removing some of the game-playing components, then charge businesses MORE for an xBox that won't play games!" Of course, this would upset Intel and all the hardware OEMs, so Microsoft would let them sell Office xBox's, too, though with Microsoft still making most of the profit, again doing nothing for Intel. At that point the median desktop computer will sell for $300.
I'm sure Microsoft would love such a business model. One wonders how AMD and Intel are going to respond - as that does seem to be the natural evolution of office computing. It might be a good reason for them to push Linux harder.
Cheers,
Scott.