DRM, or digital rights management, prevents you from trading your game or using a copy in multiplayer matches. All PC games essentially have this technology (requiring you to register for an account and enter a key). 10 years ago, it could be argued "That's not fair, I can't connect my console to the internet!"
10 years later today, that argument holds little weight as savvy gamers connect their rigs to the internet. Now that we are all interconnected, it presents a prime opportunity for game manufacturers to take control of the way games are distributed, purchased, and even played. Downloadable content may become the new norm: and now that publishers have more room in terms of direct sales; popular titles can have those cheap DLC x-pacs. One prototype for such a venture was PSN and Borderlands, which had 4 successful DLC x-pacs.
As Nintendo designs its new brand of console, the soon to be renamed "Wii-U", it is exploring the options of how to sell games. From Kotaku.com, we now know that their venture is a reality with NN, Nintendo Network. Besides working on an application store (which I'll get to in a minute), Nintendo wants to experiment with directly sending you games as you purchase them through the internet.
They have a novel way of protecting your credit card information too- two ways. Both are old school, but true- methods. One would be to purchase a points card (which activates at the register) and two would be to order with a credit card via phone. Nintendo processes the transaction from your card company, and won't store your credit card. No credit card information on hand means that hackers won't be getting at it. Surely Sony is looking at this very fact.
I would predict, in order to compete with the tablet market that the controller itself will have some kind of functionality away from the main console. This would be freaking spectacular, but the question would be how much on board space there is, and what/how many games could it carry with you on the go. If Nintendo needs to be talking or analyzing anybody, it is Valve Corporation and the STEAM client.
I am excited to see where the industry takes us. If Nintendo has sales of DLC and games on its network, and keeps prices affordable, they will effectively begin to kill Gamestop if they cease CD production.
Good, Owen. "Nintendo Network Announced; Digital Distribution of Games Envisioned." Kotaku. 26 Jan. 2012. Web. 27 Jan. 2012.
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