It looks like Microsoft is finally ready to jump into the digital distribution arena on the PC, with the announcement that Games on Demand will hit the Games for Windows Live client on December 15th.

The new download service will offer digital downloads of Live enabled games, like Red Faction: Guerrilla and Battlestations: Pacific to name a few.  No word on whether all Live enabled games will be on the service, but we will find out on December 15th as to what will be there for purchase.

Also, it looks like a few bonus extras will hit the service, as there will be Live enabled versions of World of Goo and Osmos available via Microsoft Games Studios.  Also, the exclusive Microsoft Vista title, Tinker, will hit the service as a free Live enabled download for all registered users.

While all of this is nice, Microsoft will not have the ability to succeed in this marketplace unless they can promise more Microsoft published titles, along with more Live enabled titles.  If either of these conditions cannot be met, I don’t see how they can make any money off of this venture.

Check the jump for more info from the press release.

Games on Demand, Meet Games for Windows – LIVE

On December 15, Games for Windows – LIVE will evolve beyond LIVE gaming and include a portal for accessing and downloading your favorite LIVE-enabled titles…courtesy of Games on Demand. Games on Demand for Windows lets you easily purchase and download great titles from the Games for Windows – LIVE library right from your computer, and re-install your games whenever you want, wherever you want. Games for Windows – LIVE now gives you the flexibility to access and play your games where and when you want, all straight from your PC.

“With Games on Demand, we didn’t just want to create a cut-and-paste version of existing digital distribution services,” said Mike Ybarra, general manager of LIVE Engagement Services. “We challenged ourselves to deliver an integrated platform that takes full advantage of the unique capabilities offered by the LIVE service. Our goal has always been to create a seamless online gaming experience for the Windows community, and Games on Demand is a great step toward that end.”

The launch lineup will include recent hits like “Resident Evil 5” (Capcom), “Red Faction: Guerilla” (THQ), and “Battlestations: Pacific” (EIDOS), as well as new exclusive LIVE-enabled versions of popular digital games such as “World of Goo” and “Osmos,” distributed by Microsoft Game Studios. All games can be purchased either by credit card or with Microsoft Points. Games on Demand for Windows will be available in markets that currently have the Games for Windows – LIVE service. Microsoft is also offering an updated LIVE-enabled version of “Tinker,” formerly an exclusive Windows Vista Ultimate Extra, as a completely free download from the Games for Windows – LIVE client.

“Connected digital experiences are defining the continued growth of Windows as a gaming platform,” said Chuck Osieja, creative director of Games for Windows – LIVE. “Today marks Microsoft’s return to delivering Windows games built on unique LIVE experiences.”

Games for Windows – LIVE delivers a truly connected experience for PC gamers, letting you enjoy a common Gamertag, Gamerscore and unified friends list that carries across both supported PC games and the Xbox 360 console. The service also offers single and multiplayer Achievements, voice chat, text messaging and TruSkill online matchmaking. To download the Games for Windows – LIVE client visit www.gamesforwindows.com/live.