In an interesting move, Yahoo has unveiled a a new gaming service designed to replace the local video store.Games on Demandpromises that you’ll never need to buy another boxed copy again. The plan isn’t to sell the software, but to rent it. The larger pieces of the game will be cached so it won’t be necessary to download the entire ISO multiple times. FromMSNBC:

Users with high-speed Internet access will be able to rent games for a few days or for a month with a range different pay models. It will cost $4.95 to play one game for three days, $12.95 for five games for a month or $14.95 for the rental of 10 games for 30 days.

After a one-time download of the Game Launcher, which allows games to be streamed to the desktop, players can choose how they rent the titles, either multi-game, monthly subscriptions or single, three-day rentals.

?The play experience is the same as if you bought the CD-ROM off the shelf in the store,? said Daniel Hart, senior director of Yahoo! Games and Entertainment.

Yahoo is gambling that the casual gamer will play games if they’re available cheaply and are always accesible. Compared to $50 for a boxed edition of a new game and a cross-town trip to Electronics Boutique, Yahoo may be on to something.