The internet exploded yesterday with wild assumptions and anger when Takashi Aoyama announced at Game Developer's Conference that Nintendo would begin allowing developers to offer downloadable content and charge for online gaming.

The DLC will be purchasable with Wii Points, just like Virtual Console games and future WiiWare games. It will be available for both disc-based games and WiiWare games and purchased via an in-game store, presumably to streamline the process.

The pay-to-play service, dubbed "Nintendo Wi-Fi Connection Pay And Play", will allow gamers to subscribe to certain games on a game-by-game basis (unlike Xbox Live, which requires a fee for all online gaming). What this means is that games like Mario Kart and Super Smash Bros. Brawl will continue being free, but certain other games will require a fee. This fee can once again be paid with Wii Points. To identify which games are Pay and Play, the boxes will be marked with a red Pay and Play icon, replacing the blue Nintendo Wi-Fi Connection icon. The blue icon will continue to be used for free online games only.

This is a big jump for Nintendo, who has been notoriously conservative in their free online gaming policy, but it should allow more freedom for third-parties. Expect the floodgates to truly open at this year's E3.

Nintendo will begin offering downloadable add-on content on Wii (Wired)
Nintendo to begin charging money for some online gaming (Wired)