Microsoft announced today that they are making it easier to develop applications and games for the Xbox platform, with new tools in their XNA Game Studio kit. The updated kit includes better video and audio APIs, which will allow more games using the Avatars and LIVE Party content to be developed. Microsoft also stated that their improved Xbox 360 Development and Test Kit hardware will have improved debugging memory, which will allow developers to produce games faster and more effectively.

This was announced at the same time that they are again holding their Dream-Build-Play competition. This is the 3rd year that they are holding the contest, which allows winners to get a cash prize and possibly even a publishing contract for Xbox Live. The contest starts this April, and winners will be announced this fall.