Microsoft is putting power in the people's hands. With the release of its XNA Game Toolset, people with programming skills and a creative vision will be able to make their own Xbox 360 titles.
Right now, the Windows XP SP2-based software is only in its beta release, meaning some very important features simply aren't there yet, such as the ability to create games for the Xbox 360. Right now, only Windows game development is being supported.
Microsoft is offering two plans for developers who want to put their games on Xbox, and both are exceedingly reasonable. The final software should be available this holiday season and it's likely we'll all be seeing some of the best XNA-created games at least on Xbox 360 Live Arcade by the year's end.