The whole time I was reading it I just wanted him to stop talking and take my money. He should release it on Xbox Live no matter what microsoft says. (I think anyone can do it now right?)
Yes, through the Xbox Live Indie Games program (they might have renamed it recently). Problem is, he wouldn't get the promotional backing that a "real" game gets, both from MS and from a publisher. Those games hardly get any attention, and good games often languish amongst 2-hour tech demos and ridiculous Minecraft ripoffs.
true, and hopefully microsoft comes through for him. But if it doesn't, he should go the indie program and steam route. Put up a post on reddit, and make his millions (thousands?).