Microsoft’s big promise of E3 2008, Kodu Game Lab, launches on Xbox LIVE Community Games today – priced at 400 MS Points, or $5.

Built using Microsoft’s XNA Games Studio, Kodu Game Lab is Microsoft’s answer to PS3’s LittleBigPlanet – a pick-up-and-create toolset that allows players to build their own world using a simple image-based creator menu that claims to make game-making easier than ever.

Kodu Game Lab features almost 200 different programming features to choose from, and the ability to share games with anyone on your Friends List. Kodu Game Lab enables game creation using only an Xbox 360 controller, right from the comfort of your couch. Kodu Game Lab comes equipped with a bridge and path builder, a terrain editor to build unique playgrounds, co-op gameplay for up to four players and 20 different characters with a range of abilities.

Matthew MacLaurin, Lead Kodu Game Lab Programmer:

“As a programmer, I wanted to help create something that unlocked the magic of Xbox 360 in the same way that I was able to unlock my computer as a child and bring my imagination to life through games. We had such success with bringing ‘Kodu Game Lab’ into classrooms and after-school programs that we wanted to offer it to any wannabe programmer or creator through the Xbox LIVE Community Games Channel.”