Microsoft today announced a new Xbox 360 content delivery system during its Consumer Electronics Show presentation in Las Vegas. The Game Room application will enable you to establish your own virtual 3D space and furnish it with classic arcade machines. You and your friends can then interact with the Game Room using your Xbox Avatars. Remember those?

Australia’s Krome Studios is involved in the development of the project.

The concept will undoubtedly draw comparisons to Sony’s much derided Home environment, which also features a virtual arcade. However, Game Room appears set to receive broader and more consistent support from its publisher. The service is due to launch in autumn 2010 with a selection of 30 titles, including Asteroids Deluxe, Centipede and Super Cobra. A cursory glance at the trailer suggests the line-up may also include titles such as Adventure, Combat, Outlaw and Star Raiders. A new title will be made available for purchase each week thereafter. Only one purchase is required to play a game on both Xbox 360 and Windows Live.