Game maker Nintendo will join forces with ad agency Dentsu Inc to launch a video distribution service on the Wii console, in a move to establish a new revenue stream. According to an official Nintendo statement, the company's partnership with advertising firm Dentsu will include some ad-supported but free, and some pay-to-watch videos.

With Nintendo having sold over 35 million Wii consoles to-date, they are definitely in a position to push some video into the consumer gaming marketplace. Analysts Screen Digest predicts that Nintendo will more than double its installed base of the Wii by the end of this year to over 42 million, amplifying its lead over Sony and Microsoft. But a significant slowdown in sales in November and December in Japan points to a trickier 2009 for the company in which it may not enjoy the same blockbuster success.

The two firms that made this partnership plan to offer cartoons and other entertainment programmes created for the new service to differentiate it from other online content delivery operations. Nintendo and Dentsu will start the new service early next year in Japan, followed by overseas launches later in the year, according to Reuters.

Nintendo announced on Wednesday the company’s intentions regarding the deal and thus offering a new video service in 2009. The new service will be brought to all Nintendo Wii owners.