User-created Xbox Live games to cost as low as $2.50, devs get up to 70% revenue

Microsoft confirmed today that the final phase of its XNA initiative would commence later this year when the "Community Games" channel is added to the Xbox Live Marketplace in the US, Canada and select European markets (other regions will be included in 2009 and "beyond"). User-created games will be sold at three price levels: 200 Microsoft Points ($2.50), 400 Microsoft Points ($5) and 800 Microsoft Points ($10). Microsoft has committed to share up to 70% of revenue of an indie game with its developer. (In addition, we're presuming that some games will be offered for free. Actually, no games will be free -- read our full Q&A with XNA GM Boyd Multerer right here!)

Microsoft expects that user-created contributions will double the number of downloadable games available on Xbox Live when the Community Games beta launches in the fall as part of the "New Xbox Experience." A peer-review system -- already in operation -- will theoretically keep these titles from coming under the watchful eye of the delisting committee. Though, just in case a few stinkers slip through the cracks, let's keep our fingers crossed for the availability of demo versions.

[Note: Above image is not an accurate depiction of XNA development conditions.]

This article was originally published on Joystiq.