The implication at the time was that all the titles were Microsoft, so the program may have been liberalized. This is a high risk strategy (the gamers don't like it) but Microsoft needs the money and thinks their massive advertising campaign will carry the day.

I don't see Justice getting involved. Microsoft doesn't have a monopoly in game consoles, so this sort of bundling is perfectly acceptable to anti-trust law.

Buying an XBox is something you don't want to do anyway, it reinforces Microsoft's existing monopolies and prepares the way for new ones. They are already planning a second generation XBox clearly aimed at driving the PC makers out of the consumer market. Microsoft wants to own both hardware and software.

The RIAA / MPAA are introducing legeslation into Congress to make it illegal to sell or posess any device capable of copying copyrighted material or playing copyrighted material except from the original CD or DVD. Microsoft is working hand in hand with them to make devices compliant with this law and to be the approved conduit for electronic distribution of entertainment content - preferably the only approved conduit.