Finally a reason to shell out the extra cash for the 120GB harddrive, full games on demand. Yes, Microsoft has recently announced at E3 that they will begin offering full, retail Xbox 360 games for download over their Xbox Live service.

Don’t get too excited yet because the new service isn’t set to go live until August but make note that you’ll be buying the virtual titles with a credit card instead of Microsoft Points.

Unfortunately, Engadget reports that Microsoft will not allow full titles to be rented but that it “sounds great for the future”.