During Microsoft’s keynote address, Entertainment and Devices President Robert Bach revealed Game Room, a service that will allow people to enjoy classic arcade games on their Xbox360 in their native form: the arcade.  Bach introduced Game Room by filling the convention hall with 8-bit sounds from old classics including Centipede, Tempest and Asteroids.  In Game Room, Xbox Live avatars will play in a virtual private arcade filled with classic arcade machines.  Avatars appeared to react to the arcade machines in different ways depending on your scores; a video showed a Avatar kicking the bottom of the an arcade machine.  Game Room will allow Live players experience classic arcade games with new leader boards and other forms of competitive play.  There was no direct word on pricing.  Game Room should be available sometime in 2010 for Xbox Live and Games for Windows Live.  More images after the jump.