RealNetworks and LithTech have announced a strategic alliance and licensing agreement aimed at enabling game developers to create games designed specifically for electronic software distribution (ESD) with a new version of the LithTech engine. The ESD-optimized version of the LithTech engine adds extensions for RealVideo and RealAudio playback, and new animation blending and texture compression features designed to reduce game download sizes. LithTech is making its SDK freely available to developers who join RealNetworks' RealPartner program, and developers who join the partners program will be added to RealNetworks' Real.com Games for distribution. For its part, RealNetworks has made a minority equity investment in LithTech Inc. LithTech CEO Jason Hall expressed hope that broader distribution capabilities might "change the economic model for game developers."
