@Anwar: Developers pay for the right to be on a platform like XBOX Live Arcade. In exchange, Microsoft will promote your game and manage the process of people getting your game. You must pay to then have Microsoft approve and distribute patches to your games. You are paying for the ability to be on the system and do business with XBOX 360 customers. Developers pay to be able to release games on the PS3, the 360, the Wii, or any console or handheld. That's one of the big savings of first-party development, as you don't have to pay extra to have your game on a system.
Basically, to get the deal to release on XBOX Live Arcade, Polytron had to agree to some exclusivity. So, unlike the scenarios where people have suggested that Microsoft paid them for an exclusive, they instead paid Microsoft for the right to release the game on the XBOX 360, and since they are an extremely small developer with little clout, their deal apparently required exclusivity. A bigger developer might have been paid for exclusivity, but as a small indie developer, Microsoft had the much stronger position and was able to have exclusivity be a requirement of the deal.
The makers of Fez would rather have the ability to release on whatever platforms they want, as would any developer. The problem is, sometimes you just can't get a deal like that. Publishers will attempt to get whatever they can, and since Polytron wanted the game to be on XBOX Live Arcade, they had to agree to the terms of Microsoft's deal. That's one of the more unfortunate parts of being an indie developer trying to work with big publishers.
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