Joystiq is reporting that there's a lot more interest in the XBOX Live Arcade than the MS had originally anticipated, & companies that originally only wanted to do a few titles are coming back saying they're forming special divisions just to develop that type of game. Looks like the Live Arcade's building up steam...

"It's a truly fantastic service for gamers who know that quality comes in all forms, not just the latest title with a multi-million-dollar development budget. If big publishers are developing titles just for Xbox Live Arcade, gamers are in for a treat."