Later this year, Xbox 360 is going to have a dashboard upgrade, and in that upgrade will be a Games On Demand service that will have full Xbox 360 games available for download for a lower-than-retail price.

We’re huge proponents of digital distribution and we think Microsoft is taking an assertive, market-leading position.  And we don’t want to be in Gamestop’s position a couple of years from now.

For those of you interested in which games are hitting the virtual store shelves, here you go, courtesy of Joystiq:

–    Assassin’s Creed (Ubisoft)
–    LEGO Star Wars: The Complete Saga (LucasArts)
–    Rainbow Six Vegas (Ubisoft)
–    BioShock (2K Games)
–    Mass Effect (Microsoft Game Studios)
–    Ridge Racer 6 (Namco)
–    Burnout Paradise (EA)
–    Meet The Robinsons (Disney)
–    Rockstar Games Presents Table Tennis (Rockstar Games)
–    Call of Duty® 2 (Activision)
–    MX vs. ATV Untamed (THQ)
–    Sonic the Hedgehog (SEGA)
–    Viva Piñata 2: Trouble in Paradise (Microsoft Game Studios)
–    Need for Speed Carbon (EA)
–    Test Drive: Unlimited (Atari)
–    Fight Night Round 3 (EA)
–    Need for Speed: Most Wanted (EA)
–    The Elder Scrolls IV: Oblivion (2K Games/Bethesda Softworks)
–    Prey (2K Games)
–    Viva Piñata (Microsoft Game Studios)
–    Karaoke Revolution American Idol Encore (Konami)
–    Kameo: Elements of Power (Microsoft Game Studios)
–    Perfect Dark Zero (Microsoft Game Studios)
–    Dance Dance Revolution Universe (Konami)