An announcement was made last week revealing an ambitious project by the name of Insignia, whose purpose it is to recreate the Xbox Live service for earlier Xbox games, which closed in the middle of April 2010.
Insignia will be a replacement server for the original Xbox Live services, and has been under development since late last year.
Insignia aims to restore said games to their former online-compatible glory, on par with their previous Xbox Live versions. According to Insignia dev Luke Usher, the project has been significantly demanding both in terms of time and technical input, so far having eight months of development and 2-3 years of planning before that to its name, with still more work to be done.
Source: Kotaku