1) Bungie made so much money of the halo franchise, they actually bought themselves out of microsoft. They are free to make games on any console they want now!
2) It looks real enough, and is quite possible.
a. DOA4 SPARTAN
b. HYABUSA ARMOUR in H3
c. Also during the making of Halo 2, one of their video documentaries showed one of the art directors at bungie playing Fable in the work place.
Needless to say, its very possible, and it might not be MS's doing, but a mutual agreement between Lionhead fanboys and Bungie fanboys. That also could very well mean that an upcomming BUNGIE title will have Fable reference in it ![Smily [:)]](/emoticons/emotion-1.gif)
And I think its cool that they added it, whats the big f****ng deal? Its there for fun, its not like an armour you would get during a key turning point in the story! As far as Im concerned master chief can be there just as much as the frying pan, chick outfit, pimp hat, and the guns.
PS: It doesn't even look metalic or even futuristic, its just a green outfit that strangely resembles masterchief. Its not MC's head copied on or any gay crap like that, even the very first builds of the Master Chief long before Halo: CE came out didn't look that.