"By unlocking retail Xbox 360 consoles for community-created games, we are ushering in a new era of cross-platform games based on the XNA platform," said Chris Satchell of Microsoft's Game Developer Group. "We are looking forward to the day when all the resulting talent-sharing and creativity transforms into a thriving community of user-created games on Xbox 360." Though XNA Game Studio Express-created work will only be playable by those with the paid yearly membership, the tools should allow aspiring game creators to gain firsthand experience with development, and should make it easier for small teams to create prototypes with which to pitch full Xbox Live Arcade projects. Game development technology providers such as Autodesk and GarageGames have announced their intention to integrate their products with XNA. GarageGames will be releasing Torque X, an XNA version of its accessible Torque game engine.

Microsoft also announced that over 10 universities will be adding Xbox 360 development to their curriculums by way of XNA Game Studio Express. Traditionally, game development schools have focused almost exclusively on PC development, in part due to the generally high costs of console development kits. Microsoft no doubt hopes that this move will have long term effects on support for its current and future consoles, as college graduates holding degrees in game development disciplines will be more likely to already feel comfortable developing for Xbox platforms.

The Gamefest event continues through Tuesday. Microsoft will be presenting another keynote address on Monday morning.