XNA, released by Microsoft in 2006, is a game development toolset for creating games in C# compatible with PC, Xbox 360, and Zune, resulting in over a million downloads. The platform features a community-driven review system for games, with developers retaining 70% of their game's sales and needing peer approval before publishing. Future trends indicate a shift towards casual game development and crowd-sourced projects, with concepts like 'YouTube for games' emerging.