The Xbox Live Arcade service, which turned out to be a massive success for Microsoft since its launch in late 2004, will apparently make its way through to the PC platform this fall.

Of course, not any PC will be included, only those powered by MS’s Windows OS, but the major overhaul of the Live Arcade program at Redmond is definitely interesting.

1UP has managed to uncover Microsoft’s plans for a PC Live Arcade project during a mostly producer-focused panel at Gamefest 2007:

“In November, Microsoft will roll out a developer update for their Games For Windows Live tools in anticipation of Xbox Live Arcade games rolling out in ‘holiday 07.’ The panel did not, however, reveal what games will make the leap from Xbox 360 to PC.”  

This is a major and also risky move for Microsoft because it strips its ailing Xbox 360 platform off of one of its most enticing features. As of August 15, 2007 there have been 80 titles released exclusively for Xbox Live Arcade on the Xbox 360, including the original DOOM, Lumines!, Geometry Wars: Retro Evolved, UNO or the remastered version of Prince of Persia Classic.

A Live Arcade service for PC could however pour even more money into Microsoft’s pocket, considering the huge install base for the Windows OS. With Microsoft pondering 1 billion Windows PCs by the end of 2008, it not hard to imagine the hidden cash flow the Redmond behemoth is after.

The interoperability between Xbox Live and Games for Windows is likely to create a larger gaming community under Microsoft’s umbrella, but since Xbox 360 exclusives like Gears of War and Halo are also coming to the PC, it is also likely for the Xbox 360 platform to lose its identity and attractiveness.