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> How is this different than Microsoft giving away a version of their C++ compiler as part of the Xbox development kit which can only produce executables that can be sold via Microsoft to people having Xboxes?

You mean like this[1]? Applies to both Xbox and WinPhone. Apple also gives away Xcode, but you can't make iOS apps outside of their dev program.

[1] http://create.msdn.com/en-us/home/getting_started



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