Yahoo launches new game service

The company is hoping the service, called Games on Demand, will bring more of the die-hard gaming community to its site and drive demand for the new broadband service it launched earlier this month through a partnership with SBC Communications.

"We worked with several games publishers to offer some of the most popular franchise games available," said David Mandelbrot, general manager of Yahoo Media and Entertainment.

Games on Demand will offer 40 action, adventure, simulation, sports and arcade and family games. They include "Grand Theft Auto," "Tomb Raider Chronicles" and "Skateboard Park Tycoon." Although there are a number of popular games in the selection, some of those offered are older versions that were hot a few years ago, and titles from some key game makers, such as Electronic Arts, are not included in the selection.

Players will be able to rent single games for a three-day period for $4.95. Or they can pay $9.95 for three games for 30 days, $12.95 for five games for 30 days, or $14.95 for 10 games for 30 days.

The concept of renting PC games through broadband Internet connections is not new, and many past efforts have had only limited success. Info Networks, a privately held company, operates a site called PlayNow.com offering rentals of PC titles, which has remained fairly low profile.

RealNetworks has a similar service through its RealOne Arcade application, which offers more than 190 games. But those games are not generally as high-end as those to be offered by Yahoo.

"It is an old concept," said Michael Tachter, vice president of research at Wedbush Morgan Securities. He said many serious gamers may continue to find it more cost-effective to buy the game outright than to rent it online.

Yahoo, however, which already operates a very popular site featuring free games, says broadband Internet use has reached the point where it makes more sense to offer games online.