That is bad news, very bad news indeed. Microsoft managed digital distribution?
Unless you LIKE paying £60 for new games because you only can buy them from mircosoft directly of course I see no benefits of consoles next generation, you'll still have to install, you'll require a decent broadband, you'll need to pay a large surplus for games and be gouged for money at every oppurtunity. Bill gates admitted the xbox is a more controllable PC, so that's what you get for supporting it i guess.
I hope it isn't true, but if turns out to be console gamers are screwed. Unless the ps4 works out to be far nicer which would benefit everyone! If the xbox 3 tanked out of existant, they'd take the constant bribing by M$, the enforced restrictions on games so that every single game ever is always on it, the escalating prices would steady due to PC gaming having a bigger presence, making customers see that paying £30 for a game isn't on. Actually, this may all turn out to be a good thing, as long as enough people don't buy the thing.