Los Angeles-based Xfire, the online gaming site headed by John Maffei, said Wednesday that it has launched a beta of Xfire Arcade, the firm's virtual game wagering service today. Xfire--which is owned by Titan Gaming--said the Xfire Arcade will allow users to compete head to head in casual games, and wager virtual currency on match outcomes. Xfire said the new service awards prizes on a daily and weekly basis to users, and also allows users to use gWallet to earn virtual currency to enter tournaments and win prizes. Titan Gaming, which bought Xfire earlier this year, is backed by a who's who list of LA angel investors. Maffei has been looking to transform Xfire via the addition of skilled gaming to the site, which allows game publishers to better monetize their game titles. Xfire allows those game developers to share in revenue stream from virtual currency sales and other offers to game players.