When Microsoft launched the XNA program last year, it was widely assumed that user-created content would end up on the Xbox Live Arcade. Microsoft has confirmed today via a press release that Schizoid, a co-op action game "in which teamwork matters like never before" will be the first Xbox Live Arcade title built using XNA Game Studio Express.

Microsoft has also launched a competition for game developers to, "create visions in a world where they make the rules, shape the characters and create the evolution of the story". The competition, titled Dream-Build-Play, is a global contest which encourages entrants to create their own Xbox Live Arcade title using the XNA Game Studio Express tools. The competition is open to any user of XNA Game Studio Express and is open until July 2nd. Winners will be announced on August 13th at the Microsoft Gamefest in Seattle.

The company is offering a US$10,000 grand prize, and the opportunity for the winner's game to be published on the Xbox Live Arcade. More than twenty winners will be selected to win prizes worth a total of more than US$40,000.