In setting up their E3 appointment with MS, New Zealand gaming blog Geekpulp reports that the company listed time on the itinerary to discuss two "surprise games" and one "surprise thing." That last one could be anything – 360 avatars, motion-tracking controllers, a scent-emitting peripheral – but the Geekpulp gang reckons it could be the hardware licensing deal.
If true, this wouldn't be the first time console makers have allowed other companies access to their technology. We've seen Aiwa's Mega Drive (Genesis) / Mega CD / boom box combo, a Pioneer Laserdisc player that ran TurboGrafx-16 games, and arcade machines that accepted Neo-Geo cartridges. Oh wait ... that was something totally different.