This was unveiled a couple of days ago and it's supposed to come out sometime next year. No word on price yet but I would imagine it would be smiler to the other current consoles but there is a monthly fee for the service on top of the base price. http://videogames.yahoo.com/feature/new-tech-could-make-consoles-obsolete/1299562
Doubt it. I believe most people still play games offline. Most people want to hook up their videogames in the living room or basement to an HDTV, and don't have the internet hooked up in such a way. I don't like the idea of the game coming from the internet either. Just wait for the crappy DSL to go down and you can't play. I'm quite content with buying an XBOX every 5 year.