Originally it was going to be offered only as a component of Windows Server in various flavors. Now, it'll be available as a module for these servers – for a mere $28. On top of that, the hypervisor itself will be available on its own for the same fee.
Microsoft's latest ploy to get into virtualization is pretty much the same we've been seeing for years – but particularly aggressively for the past few. They are reaching their numerous arms into social networking, media players, virtualization and much much more. Could they perhaps be stretching themselves too thin? VMWare will not likely take this lying down.