Next iPod To Have Downloadable Games?

An article in the St. Paul Pioneer Press points to Digital River to produce electronic game content for distribution to the next generation of iPods.

Digital River's stock jumped 10 percent Friday on rumors that the Eden Prairie e-commerce outsourcer was negotiating with Apple Computer to download games to the next version of the popular iPod music player. "We actually believe this rumor, as management has suggested this was in the works in recent conference calls and investor conferences," analyst George Sutton of Craig-Hallum Capital Group wrote Friday. Spokespeople from Digital River and Apple Computer's iTune program did not return phone calls to comment. Sutton wrote that he believes Apple will control the downloads instead of Digital River, and he believes the game market will be limited by file size in the near term. Digital River shares closed at $38.70, up $3.54.