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While PC game sales are slumping at retail around the world, many are quick to point out that the PC as a gaming platform is not necessarily struggling. One of the main reasons given for the decrease in store sales is the speed at which digital distribution is growing in first world countries.

While the likes of Steam, Direct 2 Drive and Impulse are gaining market share rapidly, brick and mortar stores are seeing a noticeable decrease in PC game sales.

Fortunately for local distributors, exorbitant bandwidth costs keep digital downloads isolated to a select audience that has access to uncapped internet. However, with ISPs such as Afrihost, Digi Chilli, Screamer Telecoms and now G-Connect making significant strides toward making bandwidth more affordable in SA, it may not be long before local PC gamers start using services like Steam more regularly.

Microsoft has announced that it will be jumping on the digital distribution bandwagon midway through this month. From December 15 onwards, players will be able to download PC games from Microsoft’s Game on Demand service which will be tacked onto its Windows Live gaming service. Users will be able to pay by credit card or using MS Points.

Currently the Games on Demand store for Windows only sells downloadable content, but come mid month users will be able to purchase and download a variety of PC games, with launch titles including Resident Evil 5 and Red Faction: Guerilla.

"We didn't just want to create a cut-and-paste version of existing digital distribution services," LIVE Engagement Services general manager Mike Ybarra told press. "Our goal has always been to create a seamless online gaming experience for the Windows community, and Games on Demand is a great step toward that end."

Microsoft launched a similar service for Xbox Live users in August this year, and new titles are added to its catalogue on a weekly basis.

It is likely that Microsoft will sell games at similar prices to other digital distributors. We can therefore expect new AAA releases to sell for around R390, making them slightly more expensive than their store bought counterparts and therefore unlikely to make any earth shattering changes to the industry.

It will however provide additional options for shoppers, and will provide yet another avenue for game purchases to high bandwidth users.

Discuss Microsoft's digital distribution plans in the forums