MS announced XBox Live Silver Platform which will allow for developer controlled servers for those who prefer to offer and control their own content. It is part of its new services announced at Gamefest today. They also rolled out XNA Game Studio 2.0 which adds support for the multiplayer networking API and supports all versions of Visual Studio 5.0.

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"We have just as much interest in that space as anybody else, but I will tell you that there is a lot of value to managing the service and system the way we do on Xbox Live, versus the wild, open, supposedly open PlayStation Network. You're going to have to be very careful about what happens and we'll see how much responsibility the platform holder actually takes there in terms of managing that stuff.

It's not unlike Sony PlayStation HOME. It's great to talk about all this, but assuming you could even build it, one of the biggest challenges is actually managing the behavior. We have a lot of experience doing this on Xbox Live and that's part of the value proposition we bring to our customers, is that you're going to have a great experience on Xbox Live and we take care of a lot of problems for you and don't just say it's the responsibility of the publisher of the responsibility of the community to manage this. We take accountability, we do that as the owner."