At the Australian Game Developers Conference, Microsoft revealed further details on the Xbox Independent Developer Program and the Xbox Incubator Program. Under the Independent Developer Program, potential Xbox developers can apply for the Xbox Prototype Kit (XPK), which is available free of charge. The XPK contains software and relevant information that lets individuals and development companies create prototype Xbox games on standard PCs. Those prototypes can then be presented to licensed Xbox publishers for production and distribution.

　　"Changes in the video game industry and the rising cost of production have made it more difficult for independent developers to access major publishers and their distribution channels," Kevin Bachus, director of third-party relations at Microsoft, told the show's attendees. "History has proven that great games can come from anywhere, and we want to establish an environment in which gifted game designers, regardless of their resources, have the opportunity to realize their creative visions through the Xbox."

　　The Xbox Incubator Program makes Xbox Development Kits (XDK) available for game developers who haven't entered into negotiations with a publisher regarding their game. To receive XDKs, developers must submit their game concept to Microsoft's Xbox team for approval. Once the developers secure a XDK license, they will have full access to Microsoft's technical support programs. The initial period of involvement is six months, in which time the developers can create a prototype of their game in order to secure publishing deals with licensed Xbox publishers.