At a luncheon following their media briefing today, Microsoft announced an upcoming new digital distribution service coming to Xbox LIVE Marketplace this August, called “Games on Demand.”

This new service will allow users to purchase full Xbox 360 retail games directly from their Xbox 360, games that will act exactly like their retail counterparts — achievements and all — simply without the box. 30 titles will be available when the service launches. While titles weren’t mentioned by name, some titles shown in the demo includedMass Effect,Assassin’s Creed, andBioShock.

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It sounds like pricing will be in line with other retail channels, withMass Effectbeing displayed for $19.99 in the demo we were shown. Good news? You won’t be locked into using MS Points — credit card purchases will be accepted. Right now it appears we’re looking at back-cataloged items, but the future is open for day-and-date “Games on Demand” and brick and mortar retail releases.

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