Nintendo Jumps on Digital Distribution Bandwagon

Microsoft's Xbox Live Arcade has proven that gamers like playing classics even on next generation consoles. There's just something special about those old-school arcade and early console days that warrants free time in this next generation gaming age.

Now Nintendo is adding fuel to the digital distribution fire.  Nintendo President Saturo Iwata said at the Game Developers Conference in San Jose, CA this week that in addition to offering Nintendo classics from the NES, Super Nintendo, Nintendo 64 and GameCube library, Revolution's virtual console will allow gamers to download 1,000 classic Sega Genesis games and an undiclosed number of Hudson TurboGrafx 16 games. Back in the day, Nintendo battled aggressivley with Sega. This fall, the two former rivals will work together to bring digitally distributed content to gamers.

Nintendo also confirmed that game developers would be able to create smaller, innovative games that can be downloaded to Revolution through the virtual console. It's likely that Nintendo will have a system in place similar to Microsoft's Xbox Live Marketplace and Sony's PlayStation Network Platform that allows developers an avenue to sell smaller games directly to consumers.

Earlier this week, Sony confirmed that its digital distribution network, PlayStation Network Platform, would allow PS one and PlayStation 2 games to be downloaded to PS3. Sony will even make PS one games available for download to PSP. And Microsoft is constantly adding new arcade and casual games to its Xbox Live Arcade service. All three next generation platforms will tap into the digital distribution pipeline, marking the first time that the three competitors are steering towards this territory.

There's been plenty of public outcry from developers, gamers and critics in the game industry that with the larger budgets that next generation games garner, publishers are seeking out sure things and sequels over original games. Digital distribution opens up a new pipeline for independent and established developers to reach gamers. This pipeline is already alive and well online with the PC through services like Valve's Steam.

Console games will reach a much larger audience and offer new opportunities for game makers to reach specific niches and test episodic game content. While retail stores aren't going away any time soon--there's something special about owning the game box--the future of videogames is definitely heading toward digital distribution. Arcade and smaller original games are just the beginning.