The agreement allows the Redmond, Wash.-based software giant to have exclusive rights to develop and publish online games featuring Marvel's over 5,000 comic characters such as Spiderman and the Hulk.
The lineup will be available for the upcoming Xbox 360 system produced by Microsoft Game Studios, Microsoft said.
"Marvel has created some of the most iconic and exciting characters and stories in the past century. We're thrilled to bring this universe to interactive entertainment," Peter Moore, corporate vice president of Worldwide Marketing and Publishing for Xbox at Microsoft, said in a news release.
"With this next generation of gaming, Marvel fans will finally have the ability to create choices with their favorite Super Heroes, villains and creatures in unbelievable detail -- all with the power of Marvel's incredible vision and the Xbox platform," he added.