It's offical. Microsoft has announced community-developed XNA games will soon be distributed through Xbox Live. It works like YouTube. You download the free XNA Express SDK, make games, upload it to your profile on 360, and submit it to the Community Gaming section of Live Arcade.
And just like YouTube, they are using peer review to filter out copyright infringement and objectionable content. You can also rate each game. They are calling it "democratizing game distribution".
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