According According to a job listing on LinkedIn, it seems that Youtube and Google are working on bringing the YouTube web experience to home consoles. The job listing hints at the YouTube application will not only be bringing the “TV expereicnce with You Tube video content” but also will be bringing advertisements with it, similar to what you get on YouTube.com from approved partners. The position is calling for someone who is experienced with the Xbox 360, PS3 and Wii, so we can probably expect an app being launched on all three consoles. What do you think? Obviously this is legit and was bound to happen, but when do you think it will be released to our consoles and could we expect an announcement at E3?
If this does turn out to be true, i'd say more than likely and possibly even an extra charging as it's all about marketing. Honestly though, I doubt that it'll happen as the Wii and PS3 are capable of watching youtube.
I really doubt this will turn out to be real. Like Scythe said, the PS3 and Wii already have the ability to watch YouTube. Also, Microsoft has already mentioned that they do not want full browser capabilities for the 360. Maybe they'll change their mind, but you can never tell with Microsoft.
The only way 360 users would get a browser is with MC and it's not even that great. 360 users have been begging for a web browser since the PS3 and Wii had one yet years later 360 is still browser-less. Even if 360 users were willing to pay 800MSP+ for a browser, I still have my doubts.
From what I understand M$ will not release a browser for the 360 as IE is incompatible, which would mean a different version of browser would be required, and which in turn would make M$ look a little stupid. But application front ends for web content on the Xbox 360 is definately being explored so YouTube could arrive one day.