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Microsoft (along with Sony) co-invented the word "proprietary". That way they can charge ridiculously high prices for accessories. Examples for the 360 are the wireless headset ($60), wireless network adapter ($100), 20GB hard drive ($100 - seriously, $5/GB is absurd!), 120GB hard drive ($180 - $1.50/GB is still ludicrous).
How did MS and Sony invent it?