While rumors about it have been bubbling up for a long time, Microsoft has yet to officially launch a microtransaction-fueled free-to-play Xbox 360 game. However, according to PlayXBLA, that will finally change this fall, when Happy Wars comes to Xbox Live Arcade.

Happy Wars, which the Tokyo-based Toylogic developed and Microsoft Studios is publishing, is an action game in which players create custom swordsmen and then march them off into large-scale 15-on-15 multiplayer battles. In addition to being able to take part in presumably cheerful competitive combat, players may also take part in cooperative (a human team against A.I. bots) and single-player campaign modes.

Befitting the oxymoronic title, the game features a cutesy, violent art style with a touch of crazy absurdity that enables players to dress their soldier as a badass knight, a lady in a dress, or even a chef with a pig-shaped shield and a big hunk of meat as a weapon. These customization options are most likely where Happy Wars will show its free-to-play hand. The game’s trailer (seen below) suggests that extra items may be awarded simply by playing, but the majority will need to be purchased separately, Team Fortress 2-style.

Happy Wars should be available on Xbox Live this fall and will be free to everyone with an Xbox Live Gold membership. Check out a gallery of screenshots below the trailer.

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