Web Based Video Games?

Here is an interesting development. Everyone knows that console video games are a huge business. Now, Barry Diller and IAC/InterActiveCorp want to serve them over the web. I'm rather sceptical that "console quality" will be anything better than the game sites currently available now. But Barry is a pretty sharp cat....right?

Diller's IAC Pulls Trigger on Videogame Venture

In a challenge to the videogame establishment, Barry Diller’s IAC/InterActiveCorp said on Tuesday it will launch an Internet service that it claims will offer the first “Web-delivered gaming system.”

IAC said the service will use peer-to-peer technology to render browser-based computer games with graphics that approach those in high-end consoles, such as Microsoft’s Xbox and Sony’s PlayStation 3.

IAC’s announcement follows the company’s two-year effort to buy a gaming company, which culminated in its stealth investment in Eugene, Oregon-based GarageGames in the first quarter.

Mr. Diller’s company said GarageGames’ P2P technology will be wrapped into a new IAC unit called InstantAction, which will serve up a variety of in-house and third party web-based video games.