I was at that demo, and also attended a couple more demos for XACT (the XBox Audio Creation Tool), where they talked about how they were made the demos, while at GDC. For starters the demos were running on a PC. They were visually impressive, however, note the visuals weren\'t the real focus of the demos. Basically the whole XNA label is a marketing wrapper for Microsoft to show that they are making their tools and API\'s work across both Windows and the Xbox, with support for all future versions. Their real focus was how this can streamline the content creation pipeline. Hopefully for us this might mean some real tools for the creation of interactive audio.
And for the immediate what this means is that XACT will be out for the PC in the fall. Basically it is a much better redesign of DirectMusic Producer for creating interactive audio and soundscapes. Quite cool. I wish they\'d add midi control of their parameters, but it is coming along though.