Portal could have been released on XBLA
MS said 'no'
Doug Lombardi has been spilling the beans once again, this time telling GI.biz that Portal could actually have been released as a stand-alone download for the Xbox Live Arcade.
The marketing boss revealed that the game, a hit with critics and gamers, was actually offered to Microsoft, but Valve's approach was declined over issues such as file size limits and the like.
"We’d love to do that. Right now it’s something we’d love to do. I’d love to sell Portal on Xbox Live," however "the platform holders aren’t doing that right now. There’s a size limit and all kinds of other things."
"We’ve asked them, we said we were open to it. So it’s a decision for the platform holder and how they want to make the games available and how much bandwidth they want to [offer].”
More on this as we get it.

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