Supposedly from the latest issue of GamePro.
Quote
A REAL Arcade...
Coming Soon to a Lving Room Near You
Of those of you that own an Xbox right now, how many use Live Arcade? Anyone? Bueller? Yeah, I thought so. You have to buy a hard-to-find disc to even accesss Live Arcade then you have to pay between $10 an $20 to play some rinky-dink game like Dig Dug. Yawn. That's all about to change, though: The Xbox 360 will have Live Arcade intergrated right into the box, and it willl pop right up on the home page dashboard; hit a button, and you're in like Flynn. You dont even need an Live account...or a credit card to browse, buy, and play freely. But will there be anything worth playing? We're breathless with anticipation. We got the inside scoop from Greg Canessa, group manager of Xbox Casual Games, who says that while the lineup has not officially been set in stone yet, there will be a wide variety of titles and styles, from quirky independents to big names to spiffed-up retro classics from consoles of a bygone era. The Atari 2600, TurboGraphix, Sega Saturn and even the Dreamcast were mentioned. Dare we dream? Next-gen Live Arcade sounds like the real thing.
Microsoft technically had Live Arcade long before the Rev was announced. But the Rev's system has been generating a lot of excitement (in the lack of other news), and going after other consoles is more what Nintendo had in mind, so it's pretty easy to say MS is at least taking a cue from Nintendo.
Nintendo will have NES/SNES/N64 and (full) GCN compatibility in the Rev, as well as apparently going after the Genesis.
MS will have (limited) Xbox compatibility in the Xbox360, and they're going after the Atari 2600, TG-16, Saturn and Dreamcast.
(Sony has teh BBQ sauce.

)
Personally, I think this is a blow to Nintendo (and now the Rev has nothing else special "going for it" that we know of), but that it's not surprising, because emulation is nothing new, or particularly exclusive. Also, I think this is a good thing, because there seemed to be no way Nintendo was interested in the TG-CD, Sega CD, Saturn and Dreamcast (because they're all disk-based), and I think there's a lot of potential in those systems. Also, some competition hopefully means that Nintendo will get off their butts and make this thing happen, rather than endlessly debating about who gets a percentage of what.