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Could it work, and would it be profitable for both Blizzard and the console maker?

Let's use a next-gen Xbox and whatever Blizzard's follow up to WoW would be for the sake of this discussion. Microsoft would obviously have to release a wireless keyboard and mouse for the console and they would have to work with Blizzard to find a way to have Xbox live gold members be able to log onto Blizzard's servers. As far as an MMO subscription fee is concerned maybe Microsoft and Blizz could split on this by adding the difference onto subscribers Live memberships.

So what are some of the pros and cons?

Pros: Being able to play an MMO in the comfort of your living room instead of hunched up by yourself at a computer....being able to play on a big screen HD TV....easy voice communication because every Xbox would ship with a mic.....increased subscriber base for Blizzard....increased subscriber base for Live....

Cons: Uncomfortable setup having to use keyboard and mouse on your coffee table.....even more people become addicted to the digital crack that is WoW and the world's population gets fatter.....

That's all I got! It seems like a good idea for both sides. Why hasn't it happened yet, and will it ever?