The digital distribution of video games, commonly known as games on demand, is exciting game publishers like Atari which, three months ago, launched Atari On Demand (www.atariondemand.com) to extend the life of its vast portfolio of older, mainstream titles. Gamers can pay $14.95 a month and play to their heart's content or try a game and then purchase it with the click of a mouse and a blazingly fast download. There's no need to head to the local Blockbuster or even subscribe to a games-by-mail service.

"Publishers have to be really careful not to offend the large retailers who could easily cut back on their shelf space," says Michael Cai, senior analyst at market research firm Parks Associates." And if that deters publishers from jumping on the games on demand bandwagon, it will surely slow the trend."

According to a Parks Associates study, over two million broadband-enabled households will be subscribed to games-on-demand services by 2007. But, as of year-end 2003, only 100,000 subscribers comprised that market.

From the article "Squeezing revenue from older games" By Paul Hyman

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