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If they start bundling free antivirus software into their Windows OS, then that begins to stifle competition. Why go out and buy Norton or McAfee if you have an AV present on your system already.
This is the same as with Internet Explorer. Most people don't know the difference between Internet Explorer and Firefox. My parents certainly don't, and they only started using Firefox after I installed the program and put a link on their desktop that says Internet.
Same for Media Player, in which Microsoft is currently in a fight against the EU and it now having to release a version of Windows to the European populace minus the Media Player being included.
I'm not sure yet as to whether Microsoft is going to be bundling the AV with their OS software, as this might look monopolistic. They may just go ahead and sell this as an additional piece of software that they offer.
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"You hear the one about the fella who died, went to the pearly gates? St. Peter let him in. Sees a guy in a suit making a closing argument. Says, "Who's that?" St. Peter says, "Oh, that's God. Thinks he's Denny Crane."
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