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Although we had previously heard about it via a survey, Microsoft has announced that they will be opening a virtual arcade on X-box 360 and Games for Windows Live this spring.

The virtual arcade will launch with 30 arcade classics, but eventually will have over 1,000 games in the next three years. Each title will cost players somewhere between 240 and 400 Microsoft points for purchase. You can also play them old school style using 40 Microsoft points to replicate a coin-op arcade machine requiring you to pay 40 Microsoft points per play.

You will be able to customize your very own arcade rooms and challenge friends at titles that support it.

Update: You can check out the first 30 games to hit the service after the jump

(Source: Destructoid)

Centipede (arcade)
Asteroids Deluxe (arcade)
Tempest (arcade)
Crystal Castles (arcade)
Lunar Lander (arcade)
Jungler (arcade)
Road Fighter (arcade)
Scramble (arcade)
Finalizer (arcade)
Tutankham (arcade)
Shao-Lin’s Road (arcade)
Super Cobra (arcade)
Red Baron (arcade)
Gravitar (arcade)
Battlantlis
Astrosmash (Intellivision)
Mountain Madness Super Pro Skiing (Intellivision)
Armor Battle (Intellivision)
Space Hawk (Intellivision)
Sub Hunt (Intellivision)
Sea Battle (Intellivision)
Space Armada (Intellivision)
Astrosmash (Intellivision)
Star Raiders (Atari 2600)
Outlaw (Atari 2600)
Yar’s Revenge (Atari 2600)
Millipede (Atari 2600)
Football (Atari 2600)
RealSports Tennis (Atari 2600)
Combat (Atari 2600)

(Source: Kotaku)