It makes sense in terms of Microsoft attempting to further enhance its reach into game development and enhancing the amount of exclusive content for the Xbox.
This would make it very clear that they are porno sites, and it would be easy for firewalls to block access to them.
The question is whether they can make it hip. It has to be more than just a portable Xbox and has to take it to the next design level, and that will take a lot of dollars.
Unless the French government comes up with something more concrete, saying that the $8.50 will be collected and distributed in such a way so that all the stakeholders welcome this new distribution medium, this won't go through.