Last night at CES 2010, Microsoft officially announced the Xbox 360 Game Room, a kind of retro-themed game space. If you can imagine a bustling room filled with avatars playing classic games on arcade machines, then you have the right idea. Here are some of the finer details courtesy of VG247 and Microsoft.

“Looks like users will have three different payment options, with the initial download being free.

Once a first bit of software’s downloaded, you can get classic arcade games available for individual purchase, which you buy once and play on both a 360 and PC for 400 MSP ($5).

You can also purchase for just one or the other for 240 MSP ($3), with the option to pay to play a single game (like in an actual arcade) for 40 MSP ($0.50).

You can also visit rooms belonging to your online buddies and try their games for free before laying down the cash to purchase them. Customization options are also available, but content and pricing was not included in the fact sheet.

At launch, the service includes 30 arcade titles from publishers like Atari, Activision, Intellivision, and Konami, with games like Centipede, Asteroids Deluxe and more all in their original cabinets.

You can arrange the cabinets, and decorate each room with themes and animated icons from the games, which will see weekly new title releases.

Games will be in 1080p and support up to two players, as well as implement Achievements and cross-platform leaderboards.

The Game Room will be launched in the spring”.

Heres a list of the first batch of games 360 gamers will have access to when the Game Room goes live;

1. Centipede (arcade)
2. Asteroids Deluxe (arcade)
3. Tempest (arcade)
4. Crystal Castles (arcade)
5. Lunar Lander (arcade)
6. Jungler (arcade)
7. Road Fighter (arcade)
8. Scramble (arcade)
9. Finalizer (arcade)
10. Tutankham (arcade)
11. Shao-Lin’s Road (arcade)
12. Super Cobra (arcade)
13. Red Baron (arcade)
14. Gravitar (arcade)
15. Battlantlis
16. Astrosmash (Intellivision)
17. Mountain Madness Super Pro Skiing (Intellivision)
18. Armor Battle (Intellivision)
19. Space Hawk (Intellivision)
20. Sub Hunt (Intellivision)
21. Sea Battle (Intellivision)
22. Space Armada (Intellivision)
23. Astrosmash (Intellivision)
24. Star Raiders (Atari 2600)
25. Outlaw (Atari 2600)
26. Yar’s Revenge (Atari 2600)
27. Millipede (Atari 2600)
28. Football (Atari 2600)
29. RealSports Tennis (Atari 2600)
30. Combat (Atari 2600)