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JULY 23, 2008
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The world's largest software maker said on Tuesday that it will start selling "user-generated"
games later this year on its online Xbox Live service and share up to 70 percent of revenue
with the game developer.

Microsoft began offering game production tools in 2006 to amateurs and hobbyists under an
initiative called "XNA," which allowed developers to create a game that could run on the Xbox,
a Windows-based computer or its Zune media player.

User-created content is the backbone of many advertising-supported Web sites such as
Facebook and YouTube, but the video game industry has relied mostly on deep-pocketed
developers to create sequels or games based on licensed properties.

Facebook and YouTube provide a forum for new software applications and videos for free,
but they do not share advertising fees with users.

Microsoft, however, requires the prospective video game developer to buy a $99-a-year
premium membership to the XNA Creators Club, but offers a slice of the revenue.

The games will be sold on the Xbox Live Marketplace at three different prices -- the equivalent
of $2.50, $5 or $10 -- using Microsoft points.

In order to get the game into the Xbox Live store, the games must pass a peer-review system.

"Not only are we democratizing game development with Xbox Live Community Games later
this year, but we're creating an opportunity for aspiring developers," Chris Satchell, chief
technology officer at Microsoft's Interactive Entertainment Business group, said in a news
release.

Microsoft expects the games created by users will double the number of games available for
the Xbox 360 when the Community Games section of its Xbox Live online store comes out of
"beta," or test, mode in the fall.
Creative gamers will soon be building
their own futures....
Microsoft turns to users for new wave of Xbox games
SEATTLE (Reuters) - Microsoft Corp (MSFT.O) will turn to users of
its Xbox 360 to create new video games and broaden the types
of games available on its console, taking a page out of the
strategy books of Facebook and YouTube.
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