Microsoft has revealed that the upcoming Happy Wars will be released as the first free-to-play title on Xbox 360.
Happy Wars is being developed by the Japanese studio Toylogic, and will be available to all Xbox Live Gold subscribers.
Players can purchase items to alter their character's appearance, but it is unknown if any of these virtual goods will have a more than cosmetic effect.
Microsoft has promised to support the game after launch with additional items and character options, which is in keeping with the business model of most free-to-play games.
Though other games have been available for free download on the platform, Happy Wars will be the first to offer in-game transactions.
The already announced free-to-play Ascend: New Gods will appear on the platform later.