By Neil Doughty
CBBC Newsround Online at X02 in Spain
As well as revealing the details of Xbox Live Microsoft had another big announcement to make at X02.
At the end of a very cool looking presentation they told a big group of journalists from all over Europe that they had bought one of the top games development companies, Rare.
Rare games now exclusive to Xbox
The company that made games like Banjo-Kazooie, Perfect Dark, Donkey Kong 64 and GoldenEye 007 will now be making them only for the Xbox.