Microsoft is bringing back the love with its third annual Dream-Build-Play game development competition. Just like the past years, amateur game creators are challenged to make new and innovative games for the Xbox 360.

Submissions will be accepted starting April 6 for the chance at some cash prizes and a possible XBLA contract to publish the winning game. The previous competition garnered over 350 game entries from all over the world from aspiring developers using the free XNA Game Studio. Some of the previous winners are due to release their games onto the world later this year, including a TVGB favorite, The Dishwasher: Dead Samurai.

Microsoft also updated the XNA tools for this year’s competition, allowing community developers to take advantage of customized Avatars. Additionally, professional developers are now able to release add-ons to their games, such as episodic content. “The level of innovation and the number of submissions we receive each year to Dream-Build-Play has increased exponentially because the development community is becoming increasingly familiar with the XNA Game Studio,” XNA General Manager Boyd Multerer said. “I’m really looking forward to seeing what developers are able to create with the latest LIVE features and updated tools at their disposal.”

Tell us what kind of game you would make if you were part of this competition. Us? We would make the Butmac Chronicles: Revenge of the Cardboard Box, Part Six - The Reckoning. A love story, really.