Microsoft has used GDC to reveal a new blue-tinted, XNA-branded Xbox 360 development kit.

The new hardware has 1GB of RAM – twice as much as a retail Xbox 360 – which allows developers more wiggle room when it comes to running debugging software alongside their games. The end result is an easier development process that will hopefully result in better games.

Microsoft also announced their latest Dream-Build-Play design contest, which offers a large amount of cash and a Xbox Live Arcade publishing contract to the winner. Aimed at hobbyist developers, the competition has proved to be very successful with popular indie game “The Dishwasher: Dead Samurai”, winning first place in 2007. You can count on the eventual winner of this year’s competition to be a game worth keeping your eye on.

The company also announced the release of XNA Game Studio 3.1 which will include the ability to customise and use the Xbox Live Avatars as well as add video playback and support for Xbox Live parties. Finally, professional developers will also find new tools to make downloadable content development easier.

Have you downloaded the latest issue from GamerZines yet? Check it out here!