Microsoft has announced that it will soon make it possible for its Xbox LIVE members to develop and share their creations with the community online.

The new community-developed games are expected to double the size of the Xbox 360 game library, allowing the users to enjoy over a 1000 games by the end of 2008.

“The time has come for the games industry to open its doors to all game creators, enabling anyone to share their creations with the world,” said John Schappert, corporate vice president of LIVE, software and services for the interactive entertainment business unit at Microsoft. “Our goal is to drive a creative and social revolution in games with the same transformative power that we’ve seen in digital music and video sharing.”

The news comes after Microsoft announced its DreamSpark initiative this week, which makes software tools, including XNA Game Studio 2.0 for developing Xbox 360 games, available free to students free to students.

Chris Satchell, general manager and chief XNA architect at Microsoft, said seven games developed with XNA Game Studio 2.0 are now available, including JellyCar, LittleGamers, The Dishwasher: Dead Samurai, TriLinea, RocketBall, ProximityHD and Culture.