Microsoft has announced Karaoke, an Xbox Live Arcade-enabled service set to launch this holiday. The singing game will rotate through free sample songs, but what you'll pay for isn't actually the individual tracks. For an unspecified series of Microsoft Points, players can rent Karaoke in two, six, and 24 hour blocks, similar to renting a karaoke room. The 8,000 song library opens up for your selection, and rather than downloading what you want to play, tracks simply stream when chosen.
To answer the most important questions out of the gate: Yes, your Rock Band and Lips microphones will work, as will the default Xbox 360 headset.
http://feeds.ign.com/~r/ign/all/~3/W6fs-5MnkwY/karaoke-coming-to-xbox-live-arcade-this-holiday
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