Just in time to distract millions of kids going back to school, Microsoft is running a rather extensive sale on Xbox Live Arcade games. Serious Sam HD drops down to a measly 400 Microsoft Points ($5), as does Housemarque's excellent Outland. The adorable ilomilo can also be snagged for only 400 Points, while Might & Magic: Clash of Heroes will go for 800 Points.

• Serious Sam HD: The First Encounter –- 400 MS Points/$5 (down from 1200 MS Points)

• Outland – 400 MS Points/$5 (down from 800 MS Points)

• Yar's Revenge – 400 MS Points/$5 (down from 800 MS Points)

• Islands of Wafku – 400 MS Points/$5 (down from 800 MS Points)

• Trouble Witches Neo – 400/$5 (down from 800 MS Points)

• Bionic Commando: Rearmed – 400 MS Points/$5 (down from 800 MS Points)

• Bionic Commando: Rearmed 2 – 600 MS Points/$7.50 (down from 1200 MS Points)

• Trials HD – 600 MS Points/$7.50 (down from 1200 MS Points)

• Shank – 600 MS Points/$7.50 (down from 1200 MS Points)

• Monday Night Combat – 600 MS Points/$7.50 (down from 1200 MS Points)

• Moon Diver - 600 MS Points/$7.50 (down from 1200 MS Points)

• Section 8 Prejudice – 800 MS Points/$10 (down from 1200 MS Points)

• Might & Magic Clash of Heroes – 800 MS Points/$10 (down from 1200 MS Points)

• Ghostbusters: Sanctum of Slime – 400 MS Points/$5 (down from 800 MS Points)

• Dungeons & Dragons Daggerdale – 800 MS Points/$10 (down from 1200 MS Points)

• Blade Kitten – 400 MS Points/$5 (down from 800 MS Points)

• The Maw – 400 MS Points/$5 (down from 800 MS Points)

• Star Raiders – 400 MS Points/$5 (down from 800 MS Points)

• ilomilo – 400 MS Points/$5 (down from 800 MS Points)

(via Joystiq)