RealNetworks to Distribute Computer Games Online

Having carved out a leading role in Internet audio and video, RealNetworks Inc. is trying to become a top distributor of computer games.

The Seattle-based company plans to expand its fledgling games Web site into a comprehensive service for game developers, making a wide selection of their works available to consumers for downloading or playing online.

The company is expected to launch the developers’ service today, with new RealArcade software for consumers available this summer.

Analysts say that few companies are distributing game software online, and that no one’s making money at it. But that’s likely to change as high-speed connections proliferate. “I see this growing the market for games, trying to bring it to a more mainstream audience,” said analyst Billy Pidgeon of Jupiter Research, who described Real’s effort as a “significant step up” from free game sites such as Shockwave.com from AtomShockwave Corp.

Real plans to make limited versions of games available free, but consumers will have to pay to obtain all the features. Other potential sources of revenue include selling sponsorships to games and serving ads to consumers as they download the games.

P.J. McNealy, a senior analyst at the Gartner tech research and consulting firm, said the move makes sense for Real because the company makes its money off storing and distributing content on the Net.

“What they’re doing is taking that strength and utilizing it in different areas,” McNealy said.