By Dustin Quillen, 04/08/2009 via 1UP.COM

After making major strides in the delivery of downloadable goods and, more recently, the used games business, Amazon is now expanding their digitally distributed offerings to include Xbox Live Arcade games. By accessing the new Xbox Live storefront on Amazon’s website, customers can purchase codes to add Microsoft points or subscription time to their Live accounts, as well as unlock keys for downloading a selection of about 100 full XBLA games — all of which are emailed directly to the buyer.

Why would any Xbox Live member use this service when they can already do most of the above from their console? For one, buying XBLA games via Amazon means you don’t have to deal with Microsoft points — a five dollar game is a five dollar game, and you shouldn’t find yourself stuck buying more points than you need. Secondly, your payment options on Amazon are a lot more flexible than if you’re just buying things through the Xbox Live Marketplace. On top of all that, the points and games purchased from Amazon’s Xbox Live store can be gifted to other players.

Perhaps most exciting — and this is purely speculative at this point — is the potential that this could open up the door for Amazon-exclusive deals on these downloadable games. Considering the number of videogame price cuts and sales featured on Amazon in the past, we wouldn’t put it past them to let loose with an XBLA bargain here or there.