It’s no secret that Microsoft and Apple don’t see eye-to-eye on a lot of things, but it’s a good thing that with regards to the Xbox Live app for the iPhone, everyone is a happy camper.
While it is highly unlikely that Microsoft will be coming out with an app of their own; they are, however, making sure that every Xbox Live user gets to use its iPhone counterpart free of charge. This is the mandate the company has given to all the developers who are creating these applications. Currently, there are three available in the App Store: 1337pwn.com, Xbox LIVE Friends and iLive. The first two are free while the last costs $1.99. With this bold statement coming out from Microsoft, it probably won’t be too long before the last one becomes free as well.
Though it's hard to think of a downside to this story, one needs to take into consideration the side of the developers also. If you remember, Apple does charge a fee for hosting applications in their App Store. So, while we enjoy their works for free, they do have some expenditures they have to recover in the end.
Nevertheless, from a consumer's point of view, this is indeed good news that's definitely most welcome.