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The XNA framework is free. The snag is that if you want to use it in conjunction with the 360 you are required to be in the Creator's Club. Current rates are $49 every 3 months or $99 a year.

You won't have to be a member to PLAY games made with XNA, though, that's the new thing.

While I'd rather it be totally free on both sides, this IS the most open any console has ever been.($99 a year allows you to distribute games you make to ANY 360 owner who downloads the free XNA software)