Microsoft's keynote at CES reveals Kodu, a basic programming-tool-turned-XNA-game that Microsoft is pushing as the next big thing for young minds. Kodu began life as an internal focus-testing tool for youth and has transformed into an application being positioned as one that focuses on user-created games built from the simple programming language contained within the application.
The key to understanding Kodu is that it shouldn't be viewed as a game. This isn't a product designed to stand up against other titles on the Xbox Live Arcade, and it doesn't really compare to an actual game-focused retail product such as LittleBigPlanet. In fact, if any analogy is fitting, LittleBigPlanet, with its simple mechanical switches, would be similar to assembly, while Kodu would effectively be a high-level language.