Dude, I so called this one (another XNA Post)...

Well, I called this one way back when the XNA Game Studio Express was first announced, or at least said it would be the smartest thing ever if every year Microsoft sponsors a game development competition. Now MS is going to have just about every hobbiest game developer or industry hopeful aiming to for Xbox Live Arcade based on content created in XNA GSE. Surely they're not going to guarantee Xbox Live Arcade inclusion based on the contest, but you can bet that if the winners do live up to the kind of content quality standards they're hoping for, they'll be showing up.

I really think that this platform could be an interesting boon for the Indy Games world. While I don't think it's the only thing the game industry needs to be doing to foster innovation, it's a great idea, and its really based on the model movie studios have been using for a while. Let the hobbiest's and hopefuls play. It behooves you have more people involved in creating things rather than fewer (which current licensing regimes do).

XNA Game Studio Express: Dream-Build-Play Competition

"Create an original game using XNA Game Studio Express. You could win fantastic prizes and global envy! The contest doesn't start till January, but get a head start and download XNA Game Studio Express for free today.

UPDATE:

Ok, then someone has to go and make a stupid comment, as well as some smart ones...

So there is a lot here to comment on, but let me say a couple of things.

1. Not allowing people to use C++ and being forced to use C# is stupid. It's not about "productivity" in this case, it's about getting more people to use an MS run language.
2. I think YouTube is a bad example, there are a few more barriers to entry into this market other than a computer and a webcam or video camera.
3. We should also be asking professionals to make some contribution to pushing their work to be "edgier", which isn't to say it should be about "[s]hoot-em-ups with political characters," that's a pretty weak concept of edginess. As a matter of fact, that is edgily unedgy.
4. (last one) CS programs have bigger problems than games can solve. Part of it is their curriculum. The other thing that needs to be made clearer is that the "recruitment crisis" has to do with design, art, and management as well. For some reason code is the focus for the game industry.

Done.

XNA Express will start YouTube for games, says Microsoft's Satchell // Gamesindustry.biz

"Where our vision's really heading is taking that YouTube concept and bringing it into games. Think about a Community Arcade, being able to share your own games with the whole community on Xbox Live."
...
Satchell went on to claim that a vibrant amateur development community would help head off the recruitment crisis threatening the videogame industry, citing "disturbing" admissions figures for computer science courses in the US - which are falling by 30 per cent year on year.

"If you can give people a way to communicate, to talk about content, to rate it and express what's cool, then you start a virtuous cycle, because more people want to get involved, more people create content and more people comment on it," he said.

"I absolutely believe we will find new stars in this industry from that community. I know publishers will be watching for what's cool and who's doing it."

According to Satchell, users will be free to create edgy videogame content that professionals couldn't because it would be "too risky".
...
Commenting on the decision to use C#'s managed code, as opposed to the native code used by most professional developers, Satchell noted that with ballooning budgets and team sizes, priorities in game development were changing.

"We're all concerned about performance in gaming, but in the future, in five to ten years' time, productivity is going to be more important than performance," he observed.