Not old news, since they just announced it on the 20th.

My understanding is that it works much like the YouTube model. You create your game with XNA, it gets judged by other XNA creators, then anybody with a LIVE account can download it.

They haven't announced all the details yet but, AFAIK, you have to have a Gold LIVE account to play ($50 a year). To publish, you need to join the Creator's Club (additional $99 a year). And there *may* be an additional charge to subscribe to Creator Club Content (they haven't said much about that yet).

Also, you don't get money when somebody downloads your game. But you will get fame and honor.

BTW: They also announced that it would work with the Zume (I guess the 10 people with Zume are excited about that ).