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Also i agree with karmageddon.
The. 264 is not essential to microsofts product. Microsofts product is a gaming station that evolved into a media hub through the use of something they simply decided not to pay for. They gained unfair competitive advantage through having a lower cost product with more features.
Am i right or wrong here?
I do think 2.25% is too much, but ms is clearly in the wrong here. They didnt NEED it to be successful, they needed it to be MORE successful than their competitors, and with studies showing more and more people using 360 for streaming alone, this is a big deal.