Short answers, pulled from the story.
Xbox Live Arcade officially launched on the 6th of November 2004. This launch marked the first time a major console manufacturer attempted to bring the arcade experience to the home console through a digital distribution model. The service initially included a free version of Ms. Pac-Man and six other titles.
The Xbox Live Arcade Wednesdays program launched on the 12th of July 2006 to promise a new game every Wednesday for the remainder of the summer. This strategy transformed the sporadic release schedule into a predictable weekly event that built anticipation and habit among the user base. The program later evolved into the Summer of Arcade promotional period.
On the 22nd of May 2008, Microsoft increased the size limit for games from 50 megabytes to 350 megabytes. This change allowed developers to create larger and more complex games that were previously restricted by the original size limits. The update also led to the creation of an internal games studio to produce high-quality digital content.
Games were removed from the Xbox Live Arcade service due to licensing issues and publisher changes rather than the proposed Metacritic score policy. Specific removals included nine games from Midway Games in February 2010 and titles like Doom and Marvel vs. Capcom 2 due to expired licenses or corporate acquisitions. These removals highlighted the legal and business challenges affecting the permanence of digital distribution.
Xbox Live Arcade introduced its first free-to-play game, Happy Wars, on the 12th of October 2012. This release marked a significant shift in the service's business strategy by allowing users to play games without paying upfront. Revenue for these titles was generated through in-game purchases and microtransactions.