Microsoft may not see the Xbox 360 as a tool for the military, but as an essential part of your hospital room? Sure.
Desney Tan, a senior researcher at Microsoft Research, shared how Microsoft thinks the Xbox 360 could fit into hospitals. A low-cost PC, the 360 could be networked to share medical records with an in-room screen, filtering such information depending who is in the room - your doctor vs your family vs that random guy who stopped by from work.
Sensors could make these distinctions automatically. (I imagine a scenario in which all doctors and nurses have RFID tags, and the Natal camera counts the number of bodies in the room. If the two don't match up, you available personal information becomes more conservative.)
Of course, this 360 could be used play games, too. Microsoft isn't, like, looking to torture the paediatric ward.