Xbox Live Arcade (XBLA) is an online service operated by Microsoft that is used to digitally distribute video games to Xbox and Xbox 360 owners via Xbox Live. As of October 8, 2008, there have been 168 titles released for Xbox Live Arcade on the Xbox 360.

Xbox

The Xbox Live Arcade service was officially announced on May 11, 2004 at Microsoft's E3 press conference and launched on November 3, 2004 for the original Xbox game console.

The XBLA software was obtained by ordering it on Microsoft's website. It was sent by mail on a disc that also contains a free version of the Ms. Pac-Man video game. To generate greater publicity for the service, the disc was also distributed with special issues of the Official Xbox Magazine and as part of the Forza Motorsport Xbox console bundle.

The service launched with six titles and expanded its library to twelve titles by the end of the year. Once connected to Xbox Live, customers could purchase additional titles by using a credit card, or download a limited trial version of a game. Prices for the games range from USD $4.99 to $14.99.

Xbox 360

On November 22, 2005, XBLA was relaunched on the Xbox 360. The service was integrated into the main Dashboard user interface, and the Xbox 360 hard drives were bundled with a free copy of Hexic HD. Every Arcade title on the Xbox 360 supports leaderboards, 200 Achievement points, and high-definition 720p graphics. They also have a trial version available for free download. These demos are playable and most of them offer only a fraction of the levels, modes, and content of the full game. A full version of the game must be purchased to allow the user to upload scores to the leaderboards, unlock achievements, play multiplayer, and download bonus content.

Several new features and enhancements have been added through software updates including a friends leaderboard, additional sorting options, faster enumeration of games, an auto-download feature for newly released trial games, and "Tell a Friend" messages.

On July 12, 2006, Microsoft launched the "Xbox Live Arcade Wednesdays" program, which promised a new Arcade game to be launched every Wednesday for the rest of that Summer. When that summer ended, Microsoft announced that new titles for XBLA would also be released on Wednesdays.

In order to promote the service in retail, Microsoft released Xbox Live Arcade Unplugged Volume 1 as a compilation disc of six games. On October 18, 2007, Microsoft announced the Xbox 360 Arcade console SKU which includes full versions of Boom Boom Rocket, Feeding Frenzy, Luxor 2, Pac-Man Championship Edition, and Uno.