Taking a page from the stories of
Youtube and
Facebook,
Microsoft is soliciting
Xbox 360 users to create video games that traditional game developers have strayed away from.
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.
Microsoft knows that user engagement is the key to sustaining its competitive advantage in the video game marketplace. With Nintendo’s Wii doing so well, Microsoft needs to produce excitement once again for their widely successful console. This trend of user generated video games will likely become another way for advertisers to disrupt and engage consumers, as well as a great opportunity for aspiring video game developers.
Chief technology officer at Microsoft's Interactive Entertainment Business group, Chris Satchell points out, "Not only are we democratizing game development with Xbox Live Community Games later this year, but we're creating an opportunity for aspiring developers."

The Microsoft user creation deal requires potential video game developers to buy $99-a-year premium memberships to the XNA Creators Club, but here’s the catch, creators also gain a slice of the revenue. The games will be sold on the
Xbox Live Marketplace at price points of $2.50, $5 or $10--using Microsoft points. Lastly, fellow users in the Xbox 360 community will vote on which games become available to all.
With this trend of low cost/free content proliferating the online and gaming worlds, how will companies monetize (“cash in”) on content that they do not create? There currently lies a gap between advertisers and the new influx of user generated games, the question is, who will fill that space? Check back for details on my plan and potential client (s)…