Amy's i: GAME ON FOR XBOX ONLINE; CONSOLE NEWS.

Byline: AMY VICKERS

WE knew it was coming, but we didn't expect it to be so grand. Microsoft is throwing $2billion at Xbox Live, its broadband gaming service announced this week. Xbox's J Allard revealed the long-anticipated online plans to us in LA, on the eve of E3, the world's biggest gaming show. Launching worldwide this autumn, Xbox Live takes the console wars to a new level.The development team is bigger than the one for Xbox itself, which gives you some idea of the importance of online gaming to Microsoft. UK prices aren't set, but Americans will pay $49 for a 12-month subscription, with aCommunicator headset - for taunting opponents while you play - thrown in. You'll have to pay your ISP for a broadband connection on top, of course. If Microsoft can't run an online service, nobody can, but success will depend on the quality of the games. Launch titles includeUnreal Championship, Phantasy Star Online and a role-playing games based on Star Wars, with 50 more due by the end of next year. We've had a world first look at most of them, and Project Ego and Ninja Garden stand out to us. But we haven't forgotten that a broadband connection is harder to find in Britain than adecent cup of tea over here in LA. Microsoft says it's planning for the next five years and online gaming will be a big reason to get broadband. But that's what was said about online music before Napster went to the wall. After online console gaming the buzz here is about Blinx, an apparently simple platform game destined for greatness thanks to one simple but brilliant idea. We'll tell you about that - and the other games - in Kelly's i on Saturday.

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LIVE WIRE: J Allard announces $2billion gaming plans; SOON:Project Ego