Xbox Live Community games has a new pricing structure for titles on the service, and some will be as low as $1.
The old pricing is going the way of the Dodo, which included hobbyist developers to be able to price titles for 800 Microsoft Points ($10), 400 MSP ($5), and 200 MSP ($2.50).
Instead, a tiered system has gone into place offering three different price points: 400 Microsoft Points ($5), 240 MSP ($3) and 80 MSP ($1; dollar values approximate).
Only games 50 MB in size and smaller can be sold for 80 MSP, and games currently at the price point of 200 MSP get shifted to 80 MSP unless the developer changes it themselves – but if the price is currently 800 it stays that way until the game gets an update which causes it to move to the tiered system.
Despite the changes, Microsoft will still not allow a full game to be a free download.
More over on Gamasutra.