Kodu Game Lab, the game making software for Xbox Live Community Games, is now available on Xbox Live Marketplace. The game is located on Community Games blade, and costs 400 Microsoft Points ($5) – it can also be purchased here. As with all Xbox Live Arcade titles, you can download the trial before purchasing.

Kodu is chiefly aimed at children, but adults will find the software intriguing as well. It’s object based – you select or create objects, and assign properties and AI to them. Uploading content to the community is not available yet, but a game may be shared between up to six people on the friends list, both to play together and also to co-operate in developing the game.

Microsoft has high hopes for Kodu, hoping it’ll inspire more Xbox Live Community Games and an increased interest in developing games for the Xbox 360, as well as fostering a love of game development in children.