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KylieDog said:

Which goes against what devs have said...

"Most importantly to us, Microsoft priced it so that it's far more affordable than other hosting options"

Nobody calls free 'more affordable'.

I'm sure will be some kind of indirect 'price' for this though, like need do something exclusive, be it timed release, DLC, whatever.

You are definitely correct that nothing is ever free but also policy changes in a competitive market.  MS could have changed the situation where now they are willing to just give developers dedicated servers as an incentive for more MP type of games.  Part that is not free is on the consumer end because MP will stay behind the pay wall.   The reason why MS might make this happen is that they feel they can sell enough XBL license and services to offer this cost to their business.  There are many ways to skin a cat as the saying goes.