AUG. 11, 2009 • The Xbox Live Games on Demand service launched with about 20 titles.  For the first time Xbox 360 users can download full versions of games that were initially launched at retail.  Initial prices range from $20 to $30 and included such high profile Xbox 360 titles as Mass Effect, Elder Scrolls IV: Oblivion, BioShock, Assassin’s Creed, and Lego Star Wars.

Impact: For Microsoft, Sony and other game publishers the move to direct distribution would be an absolute blessing.  The reason it has not happened faster is all practical.  Brick and mortar retailers are still an essential part of the food chain and are still very much needed to get consumers to buy products. Consumers still demand physical product and hard drive storage is still limited.  Thus, the actual impact of the initial Games on Demand service is currently very limited.  However, it is a clear sign of the future.  Initial titles are catalog product, but one of these days customers will be able to download product on the day of release and that means no more waiting in line at GameStop.