It's not quite the same...

So, unless something drastic has changed since GDC '06, it's not quite the same thing. Not to say that there isn't something really neat going on with Xbox Live Arcade, and that from the sounds of it at least Nintendo will be doing something similar. Of course you have to compete with Mario and Sonic in that space, but still...

Xbox exec reaffirms Microsoft's commitment to digital distribution // GamesIndustry.biz

"Xbox Live Arcade is the Sundance Film Festival of games" - Canessa

Xbox Live Arcade - Inside the GDC 2006

The overall lifecycle of an Arcade project looks fairly similar to a traditional console title, though a bit more streamlined.