You've likely read about the Microsoft's upcoming "Game Room" virtual environment (developed by Krome Studios) at our sister site Gamasutra or elswhere, but I'd feel remiss if I didn't discuss it here, seeing as classic and arcade gaming are routine topics here at GameSetWatch.

If you missed the CES reveal yesterday, Game Room is a return to Xbox Live Arcade's initial approach of re-releasing retro titles, though this new gaming space is intended for both Xbox 360 and PCs. It will allow you to walk through and play virtual collections of arcade cabinets with your avatars, similar to the arcades in Sony's PlayStation Home.

Microsoft hopes to provide more than 1000 classic titles over the next three years through the Game Room, putting out around three releases each week. When Game Room launches this spring, it's expected to offer around 30 titles. Some of the releases hinted at so far in the trailer above include Tempest, Centipede, Space Armada, Crystal Castles, Yar's Revenge, Star Raiders, Adventure, and more.

As for pricing on the games, you can pick one up for around 240 to 400 Microsoft Points, but there's also the neat option of paying only 40 points for a one-off play, emulating the single-quarter, single-play experience. There also a great feature that allows you to invite your friends to your Game Room (or visit theirs) to show off your machines and even host a two-player game.