Brady Forrest from O'Reilly Radar posts about Kodu (nee Boku), a project from Microsoft Research that has been around for a couple of years, but appears to be almost ready for action. It looks like it is a very exciting, and innovative way for kids to create their own games using a visual "programming language" on their Xbox. They can also exchange games with each other.
Kodu looks very exciting, and we will definitely be getting it once it is available.