Microgames Live

It strikes me that party games such as WarioWare could benefit from online connectivity in a different way than just providing multiplayer features: more games.

Presumably, these games are built in such a way as to allow easy integration of the mini-/micro-games, so it would be reasonably easy to integrate newly downloaded bits of content. Imagine they even released the API before the game was launched (a la The Sims), allowing clever folks to create new sub-games which players can download. Imagine that the developer/publisher actually created some sort of ecosystem which rewarded the creators of these new sub-games in some way (perhaps with a cut of any charges made).

This is perhaps an opportunity which Xbox Live is missing: providing billing on behalf of others (a Holy Grail in mobile games as well, as it happens). Microsoft now has a billing relationship with the Live subscribers, so it would be in a position to offer this. It probably needs to reduce the monthly subscription fee (to 50% of the current level, IMHO) before doing this, but I think it could allow some cool innovation…