MAY 24, 2010 • Digital distributor Direct2Drive launched its Online Games Channel that offers gamers online games bundled with virtual in-game content in affordable, downloadable packs. The new channel introduces a new play and monetization model that delivers online games with an added suite of virtual items to entice new gamers into later micro-transaction purchases. Developers participating in the channel include Electronic Arts, Outspark, Turbine, NHN USA, G4 Box and Three Rings.

Impact: In our surveys it is clear that Direct2Drive is far behind in digital distribution of full games, with Valve’s Steam service the clear front runner.  Furthermore, competition among digital distributors is only increasing as companies like Microsoft and Xfire (owned by MTV) make a big push into this area.  To stay in the race it is clear that Direct2Drive needs offerings that help its service stand out from the pack.  Getting consumers to buy extra digital content and downloadable packs is clearly a big deal for game publishers.  By helping facilitating this type of transaction a service like Direct2Drive could offer a benefit for both consumers AND publishers.