[Matra et Alpine]

Not sure that it could work well for single play mode.
So I think the consoles will still have a market for a few more years
PCs are best anyway !!

In the early days of MMPGs like World of Warcraft their was huge scepticism of the business model. Yet they have millions paying monthly fees to play online !

Early days for this and I'm guessing can be done for little entry cost.
I'm sure they could run the thin-client processes on the consoles, so it's not as if you throw something OUT to get it. Buy the software and your PS3/Xbox could run it.
(in theory).Makes LOTS of sense if they do approach it this way as any revolutionary gaming solution will be attacked head on and beaten down by Sony et al, but a flanking manoeuvre that slowly builds a defensible marketplace will be a big plus. Good luck to them. I'm always for more choice, more options.
PS: IF it takes off, MS will likely buy them out -- or copy