Possibly a little test run before the N2000/Project Dolphin hits? Could be...Fastest Gaming News, IGN64, and Nintendojo have the story. Here's FGN's part:

Nintendo has struck a deal with Recruit to set up an online joint venture which will sell game software as well as offer other online services. The new company will offer these attractions though on a members only basis from this December.

Anyone who wishes to subscribe to the new venture will need to own an N64 and the upcoming 64DD disk drive. They will receive game software, online publications and the chance to play multiplayer games on the network.

It will be equally owned by Nintendo and Recruit but will be run by a Recruit official.

And here is what IGN64 had to say...

After years of speculation about the Nintendo 64 Disk Drive, there is now solid proof that the much maligned add-on unit will be released, at least in Japan. Recruit Company and NCL have announced a partnership to produce an online service that will use the 64DD as the interface for a variety of games, e-mail and other services.

The 64DD was one of the selling points of the Nintendo 64 when it was released in 1996. Combined with the N64, the 64DD would make the console a more powerful gaming system overall, with increased memory and storage capabilities. For example, an N64 owner would be able to use the disk drive to add levels or characters to a cartridge game they've already purchased, giving that title more life. The DD's writablity would mean that routine information normally saved to the cartridge could be saved to a disk instead. Game companies could then program carts more creatively with all of the extra room available. Now it seems that the 64DD's capabilities have been expanded to include internet usage. Using a modem, the 64DD would provide N64 owners a quick and familiar means of navigating the internet to download games, updates and other information. Also, online gaming in Japan is extremely popular and Recruit's racetrack and entertainment interests would have full support on the 64DD

Upon it's launch, the N64 promised several games that would use the 64DD technology. The Legend of Zelda: The Ocarina of Time was originally scheduled to be a 64DD compatible game, but because of the title's popularity it was released on a larger cartridge, giving it the same capabilities as a 64DD game.

Although there is no official announcement of the 64DD being released in Japan or the United States, an online service utilizing the hardware is the surest sign yet that the disk drive will see the light of day. In addition, the 64DD requires the use of the 4MB RAM Expansion Pak that was released last year. With projected hit games like Donkey Kong 64 requiring the Expansion Pak, Nintendo could be laying the ground work, by getting consumers used to the Expansion Pak, for the release of the 64DD.

Nintendojo has the story on the games...

Nintendo and Recruit announced today the creation of a gaming network that will unite Japanese gamers in online play, game downloads, and more. With a starter kit (N64+64DD+modem+something else), they can connect to this network and download digital contents. Contents that you purchase electronically, which include games, game updates and patches. Listed below is a look at what games and accessories will available, many of these details previously unseen outside of Japan.

Along with the There will be a digital camera, portable terminal, and keyboard peripherals for the N64. You can exchange game data with another person, like adding music, image, making a game personal. This will supply unprecedently play.

The first 64DD games are Kyojin no Doshin, Mario Artist, Golf, Dai Senryaku, among others. There will be a Shogi (chess) game (by Seta probably), and a Mahjong game. There will also be a game called Wall Town, and there will be a fighting game. An F-Zero expansion set will be available. All of these titles, and the ones below, will be available at release of the 64DD/network. Its likely that the rumored Ura-Zelda expansion for the Legend of Zelda: the Ocarina of Time will be released in Japan via the network as well.

As was revealed at Space World 98, there will be many "Mario Artist" games. There's going to be a 'Sound Maker', 'Video Junki Maker', and 'Game Maker' games. Video Junki (Junky) Maker enables gamers to make their own choreography from still pictures that you download into your DD disk. Game Maker lets you create characters for games. You can create a game too probably via one of those primitive game engine makers.

The "Enternet" will be used for several different features. There will be a 'Digital Horse Racing Newspaper' -- A service where you can get on the Enternet and check up on the latest Horse Racing data. Horse racing games are a very popular genre in Japan, so this feature should go over great. However, much like the 64DD, with the exception of Mario Artist, many of these titles are unlikely to be released outside of Japan.

NCL also posted a diagram of how the network will work. The online gaming feature is shown. It looks like an F1 racing simulation game, and another page on the site backs that up. Nintendo has BIG plans for the 64DD, it seemsat least in Japanand they certainly are exciting.