XBOX-HQ.COM - Xbox Live Arcade Hands-On

Xbox Live Arcade, available November 3, is one of Microsoft's more intriguing ideas for expanding Xbox Live's reach. Here's how it works. You order a free launcher disc from Xbox.com (expect a $5 shipping and handling charge). Once you have the disc, you can go onto Xbox Live and check out all of the currently available games, which are separated into different categories.
Games aren't free and will cost between $9.99-$19.99. Some of these are for single games, which you can play as often as you like after paying the one-time download fee, or can be a package of games. There's a Namco Arcade Classics package, for example, which includes Pac-Man, Dig-Dug, and Galaga, so you pay one flat fee (the pricing has not yet been confirmed, but will be at least $9.99) and can play the games from this package as often as you like.

While Live Arcade is a good idea, there are a few concerns. First, if you are going to play someone online, both of you need to have purchased the games package. That leads to the second concern -- cost. A $10 minimum for something like the Namco Arcade package seems a little steep. The thought that the package could end up as much as $20 makes me wonder who came up with this price point? Will gamers lay down that kind of cash for old school arcade games, board games, and newly-created mini-games? That remains to be seen. I do know that most expected the price to be $5 a package, but that's not happening.

News-Source: http://xbox.ign.com