Microsoft continues to expand its Xbox Live service with the announcement of the new retro focused Game Room.

Designed as a place for user avatars to socialise and play classic arcade games, the service intends to offer over 1000 titles during the next three years.

Users will also be able to build and customise their own space within the service when it launches this spring, with 30 titles available on day one, including Space Hawk, Sea Battle and Millipede.

Prices range from 240 - 400 Microsoft Points to buy a game, or a one off play of 40 Microsoft Points, with users able to share them between Games for Windows Live and Xbox Live accounts.

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