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Digitally Distributed Game Rentals

It’s something I’ve been waiting and waiting to hear about. The technology is all there and has been forever. Even more, the technology is all out there being used in the marketplace.

When the Xbox 360 got the ability to install games to its hard drive I wondered when it might happen…

When streaming services like Netflix and Hulu (and, later, Youtube with HD videos), I wondered if it would be coming soon…

Even every time that a game was released to tremendous outcries from the gaming community because of horrible DRM (*cough* EA *cough*), I waited for the dots to be connected.

DRM. Bandwidth. Storage. What other technical elements do you need to establish digitally distributed rentals? And, it’s all out there being used.

Consider Netflix’s streaming service: At least anecdotally, there are a large number of users who simply do not watch the DVDs they borrow and solely use the Watch It Now option. It’ll be interesting to see what percentage of their subscribers switch to a streaming-only option when it becomes available this year.

Whereas previous streaming and digitally distributed models failed, <insert some hard numbers here> services like Steam, Direct2Drive, iTunes, Hulu, and Netflix are seeing a solid and growing user-base.

The technical canvas and market attitude seem to be set for the next obvious evolution of video game sales. Now all that seems to be missing is the team to put it together and really sell it. Any takers?

P.S.:

Yes, there are some downloadable titles on some consoles, and there are smaller titles like those on Xbox Live Arcade. The successes of which are more evidence that the customers are embracing digital.

Yes, the success of digital sales my beg the question why go for a smaller profit per game rental model if people are willing to buy games at full retail.

Yes, I’m mostly thinking of the console market where rentals have made sense and have existed. I have had my Gamefly subscription for over a year now and wish I didn’t have to deal with the physical media and annoyance of mailing rental games.

Also, this post comes after a rant against the money-sucking leech of a company that is GameSpot. An eyesore on the second-hand games market as well as the gaming industry as a whole—at least in my view.