Can you download games from Xbox live?

Answer 1

Yes but there are a limited number of titles to purchase;

Xbox live offers two types of games for purchase, xbox classics and xbox arcade:

Xbox arcade - these games are very cheap in terms of Microsoft points, they are retro versions of old games such as sonic and shinobi, these games are of low graphics and are for the casual gamer

xbox classics - these games cost aroun the same as many retailers, these games include classic xbox releases that have been awarded high prestige after release, games include; oblivion, fable 2, fable 1, fallout 3, halo combat evolved etc. Xbox live does not sell games which are new to release or recent, Microsoft are very selective with their choice of games.