Developed using the Microsoft-issued XNA software, the games will be priced depending on their size. 50MB titles will go for 200 Microsoft Points ($2.50), with 150 MB games going for either 400 ($5) or 800 Microsoft Points ($10).
In terms of royalties, game creators will receive 70% of the title's total sales revenue, though an additional 10-30% may be subtracted based on promotional fees.
Developers are not able to opt out of the royalty-cutting promotions as Microsoft claims "all creators agree to a common set of terms when they submit their game to the service" and "the majority of sales and revenue a creator earns will be generated by our promotions."
Microsoft further stated that developers will be able to choose between the applicable price points, but that free games will not be available. "We're always exploring new ways to distribute Xbox Live Community Games," the company noted.