Final Fantasy XIV Not Coming To An Xbox Near You

After much discussion it seems Square Enix and Microsoft have been able to come to terms over Final Fantasy XIV because the game will NOT be released on 360. Final Fantasy XIV will be an MMO and be looking at a 2011 release on PC and PS3. Square Enix states that the reason for not making an Xbox version is that Xbox LIVE is too much of a closed environment for what they want. My only question is how is Xbox LIVE different today than when Final Fantasy XI was released?