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According to 1up, it was revealed at Microsoft's XNA GameFest 2007 that the company plans to bring Xbox Live Arcade to Windows as part of its Games For Windows Live initiative. That's right, now you'll be able to play Uno on your PC...or wait a minute... you already can. Or, what about Geometry Wars on Windows? Well, there's Grid Wars (I'm not linking to a download site because MS did a cease and desist on the creators. If you want it, Google it), or you can get the real Geometry Wars on Steam. Despite all my sarcasm in the last paragraph, I think this is a good idea for Microsoft, if they actually do it right. By that I mean Microsoft should allow you to play games on your PC that you have already bought on your Xbox and vice versa so that you aren't stuck buying the same game twice. That would be a great move for current Live subscribers. However, I do think XBLA on Windows may not be a good idea because people who don't have an Xbox Live subscription because there's already a great service that does what XBLA would do, GameTap. But still, props to Microsoft for not forgetting the PC gaming market.
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I think the multiplayer games of Live would be hugely popular but like you said, many services out there already are equal or better than the games of Xbox Live.
Also the issue of portability. XBL games can be transferred to mem cards for transportation, I wonder how they'll handle these. Or maybe it'll be a login service with no actual games on the HDD.
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