A bit of a headache happened when Microsoft launched the new Xbox Live Game Room yesterday. Apparently when it was first released, it simply would not load games. Basically, when you attempted to load games, it would just hang on the loading screen. For the Windows version it was much of the same with an error message that “install of item failed.”

Since the initial bumps in the road, Microsoft has been able to resolve the issue and it would appear that they have been able to get it working correctly on both the Xbox 360 and Windows platforms. The Game Room is a big deal for Microsoft, as the company plans to partner with a number of companies to offer classic video game titles from video games past. According to the talk that we hear, the company intends to have over 1,000 of video game classics within the Game Room over the next year or so.

The strategy for the Game Room is quite simple. Players can either try their hands at a single play for $.50, or purchase the title for use on a single platform for $3; and they have the option to purchase it for use on both platforms for $5. If it is successful, this model would become the gold standard for the offering of classic video game titles and quite a revenue stream for Microsoft. Too bad that it got off to a bit of a rough start, but it is likely that most didn’t notice.