Actually, for the specific purpose that you're speaking of, I think yes, it does contradict your statements. If you were building a game console, you could probably get nearly immediate access to the Windows source code. They have it such that you can compile Windows with the kernel modules of your choosing, specifically for use in embedded hardware scenarios. And it's actually configurable to run on ARM, not just x86.
And I doubt they would actually prevent you from making your own competing console, because A) Windows is a separate division from Xbox, and B) Xbox is a lot more than just a console that runs Windows. Just because they make their own tablet computers doesn't mean they're preventing people from making tablet computers.
And I doubt they would actually prevent you from making your own competing console, because A) Windows is a separate division from Xbox, and B) Xbox is a lot more than just a console that runs Windows. Just because they make their own tablet computers doesn't mean they're preventing people from making tablet computers.