Microsoft has launched the Kodu Cup, a game creation contest  for kids aged 9 to 17 with top prizes of $5,000, a trip to New York, an Xbox 360 with Kinect and a Toshiba laptop.

To mark the the launch of the latest Kodu Game Lab for PC, (see Kodu - programming for kids) Microsoft has announced the Kodu Cup Contest which is accepting entries of games created using this software up until May 10th. 

Kodu is popular in many parts of the world but this contest is only open to

"legal residents of the fifty United States and the District of Columbia who are between the ages of nine and seventeen".

which is a shame in these days of the global web.

Three prizes will be awarded in each of two  categories- ages 9 to 12 and 13 to 17 with marks being awarded for:

• Innovation: How creative and technically unique is the Game? (25%)
• Fun Factor: How intense, exciting, and entertaining are the attributes of the Game? (25%)
• Production Quality: How complete is the Game including its polish of design, functionality, and thematic execution? (25%)
• Presentation: How clear and precise is the Game Summary and Game Play Instructions (25%)

The highest scoring contestant in each age category will be the Grand Prize winners and the next two will be awarded the First and Second Prizes. Four copies of Microsoft Office Professional 2010 are also included as Sweepstake Prizes.

Part of the Grand Prize is a trip to New York to attend the finals of the Imagine Cup. So it really does seem that Microsoft is trying to encourage the next generation of developers. 

So if you know any budding game designers encourage them to give Kodu a try.

More information:

Details of the contest

Full details of the prizes 

You can download Kodu from the Microsoft Download Center.

For more information, tutorial videos and a Classroom Kit for Educators visit the Kodu Game Lab.