With headlines like "MS Destroys the Consumer AV Market," the news hit ... well, hit the fan like the proverbial... well, you know what :-)
Is it really "Good-bye Big Yellow and Little Red?" Probably not, as this new offering is aimed at consumers and lower-end SMBs; large orgs will still pay ransom ... eh, subscription fees for their AV. It was also interesting to read some of the comments, like "OMG, I so hate paying for AV... and now I won't have to." If such sentiment is indeed widespread, maybe MS choose a really, really good moment to come out with this!
The most fun comments are found on the OneCare team blog here. Esp. see this one: "a majority of consumers around the world do not have up-to-date antivirus, antispyware and antimalware protection" (now they will, thanks to MS! :-)) and "this new offering will focus on getting the majority of consumers the essential protection they need by providing comprehensive, real-time anti-malware protection, covering such threats as viruses, spyware, rootkits, trojans, and other emerging threats, in a single [FREE!], focused solution."
UPDATE: very funny comments from AV firms and "normal people" (see below the article at the link)
UPDATE2: another very fun comment, including "maybe it's time that Symantec and McAfee start offering free versions of their own antivirus products"