Judging from the article it seems that they're essentially running Steam on a PS3. The reason that the Xbox 360 doesn't have it yet seems to be that Microsoft just doesn't like giving up control.
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Which of course brings up an obvious question: was this option also offered to Microsoft? "It is achievable from a technical standpoint, yes," he told Ars. Allow us to speculate for a moment and say that Microsoft most likely doesn't like third-parties using their own online tools, nor would it agree to giving up any control of patches or updates, an issue that has long been a sticking point between the two companies.
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