RealNetworks rolls out game subscription service

SEATTLE: RealNetworks Inc. has launched a new subscription service that

delivers video games over the Internet as the digital media leader seeks to

diversify to offset slower growth elsewhere.

The new service, called GamePass, will allow users of RealNetworks' online

game delivery service to download one game per month for a monthly fee of $6.95

and to buy additional games at a discount.

Subscribers to RealNetworks' RealOne core media delivery service can join the

game delivery program for $4.95, the company said. RealNetworks has been trying

to move beyond selling systems software to companies that want to broadcast

music and video over the Internet and the players for users to receive such

content on their personal computers.

The company said more than 700,000 people have bought games from its download

service, which is now called RealOne Arcade and offers more than 230 game

titles. RealNetworks' shares tumbled 27.5 per cent last week after the company

warned that it will post a second-quarter loss, and a research report suggested

that its lead over rival Microsoft Corp.'s media player was narrower than once

thought.

In response, chief executive Rob Glaser said RealNetworks is not losing

market share and has a healthy and growing consumer business. The stock closed

on Friday at $4.07, up 16.3 per cent from a near-record low the day before.

RealNetworks did not indicate what sort of effect it expects the new GamePass

service to have on sales.

Anthony Leamer, a RealNetworks product manager, said the company priced the

service so that users could get games from the Internet at a reasonable cost and

structured it so that any titles acquired could be kept permanently, even if the

subscription is canceled.

Leamer said RealNetworks sees RealOne Arcade eventually moving beyond the PC

and onto other gaming platforms like video game consoles and handheld gaming

devices. "But the infrastructure isn't there yet," he added.

"Until that changes, we'll continue to focus on the PC."

(C) Reuters Limited.