[4] 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[5] The service launched with six titles and expanded its library to twelve titles by the end of the year.

[6] Once connected to Xbox Live, customers could purchase additional titles by using a credit card, or download a limited trial version of a game.

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.

A full version of the game must be purchased to allow the user to upload scores to the leaderboards, unlock achievements, play online multiplayer (with a few exceptions), and download bonus content.

[18] In order to promote the service in retail, Microsoft released Xbox Live Arcade Unplugged Volume 1 as a compilation disc of six games.

Anyone who downloaded one of the titles released over August, (Geometry Wars: Retro Evolved 2, Braid, Bionic Commando Rearmed, Galaga Legions and Castle Crashers) would be entered into a prize draw with a grand prize of 100,000 Microsoft Points, 12 Month Xbox Live Gold subscription, and an Xbox 360 Elite console.

Anyone who purchases all the titles released ('Splosion Man, Marvel vs. Capcom 2, TMNT: Turtles in Time Re-Shelled, Trials HD and Shadow Complex) will receive an 800-point reward.

The next Summer of Arcade began on July 21, 2010, and features Limbo, Hydro Thunder Hurricane, Castlevania: Harmony of Despair, Monday Night Combat and Lara Croft and the Guardian of Light.

[26] On March 27, 2007, Microsoft declared Uno to be the first Xbox Live Arcade game to exceed one million downloads.

[31] On September 19, 2007, Microsoft announced the top ten Arcade downloads worldwide as Aegis Wing, Uno, Texas Hold 'em, Geometry Wars: Retro Evolved, Bankshot Billiards 2, Street Fighter II: Hyper Fighting, Teenage Mutant Ninja Turtles 1989 Classic Arcade, Worms, Castlevania: Symphony of the Night, and Contra.

[33][34][35] Others are permanently free including Aegis Wing, a game created by three Microsoft interns,[36] TotemBall, a game that can only be played with the Xbox Live Vision camera,[37] Yaris (a Toyota-backed advergame),[38] and Dash of Destruction, which was released on December 17, 2008, as a Doritos advergame.

[40] As of July 22, 2008, current Arcade Hits include Lumines Live!, Assault Heroes, Zuma, Doom, Bankshot Billiards 2, Small Arms, Puzzle Quest: Challenge of the Warlords, and Marble Blast Ultra.

In May 2007, Microsoft announced that games older than six months would become eligible for delisting from the service if they had a Metacritic score below 65 and a conversion rate below 6%.