There was a time when anybody could create games for the consoles available. Then they changed things, ostensibly to control the quality of the games. Hobbyists went ahead and made their own games anyway, but Sony and Nintendo always did their best to crush independent development. Development kits for the PS2 are horrendously expensive, and Sony won't sell them to just anyone. Officially sanctioning independent development is a smart move on Microsoft's part and it will be interesting to see whether Nintendo and Sony have a response to this.
Now if they would all just drop the anti-competitive region locking.