"The official word from Microsoft on downloadable content for Xbox 360 is that it will have downloadable game content, trailers, and demos, some free and some for a price. What has not been mentioned before is that the Xbox 360 will have downloadable games.
This bit of information was revealed in a press release sent out today from GarageGames about its new President, Mark Frohnmayer. Frohnmayer had this to say: 'GarageGames now has three powerful engines, and we're constantly improving our development toolset. We've got several exciting projects on the horizon including a killer casual game being developed in partnership with another company and a downloadable title for the upcoming Xbox 360.'
It seems the Xbox 360 Live service will allow purchases of games online. Microsoft has yet to release official information on this, but we'd speculate this would be an opt-in style delivery service. GarageGames has always used online purchasing for their games and it's likely that companies such as Sega, Microsoft Games Studios, and others will continue to make sales through retail. Still, cheap games that can be tried in demo form and purchased without ever leaving your living is not a bad thing."