Speaking yesterday at a launch event, Chris Satchell (general manager of Microsoft's game developer group) expressed the desire to take the popular YouTube concept and bring it to video games:
Look, I'm all about giving power and freedom to the end user. There's no doubt that by offering up the tools to create content and a forum to distribute it, we're going to find some excellent stuff and reveal a whole world of talent that we otherwise might not have been privy to. Knytt is a great example.
But for every diamond in the rough found on something like YouTube, there's at least nine videos of someone's dog taking a dump that we have to be subjected to. How will it be possible for Microsoft to control quality, if they'll even try? I have faith that the community can regulate itself, but the minute an "outsider" gets his/her hands on a freeware Pac-Man clone called Dr. Poopants, M.D. Eats Fart Burgers LOL, it's going to be hard to erase that experience from their mind.