The press release is here, but basically, pjio.com lets arbitrary people upload games — standalone Windows games, that is — and put them on this portal. A web-browser plugin then lets them be played in the browser. Users can play them for free, tag them, and earn “karma” which lets them unlock game features, etc. They can also just follow the links back to the indie developer and buy the game from them. Lastly, the players can actually find a game they like and embed it in their own website, just like you can with a YouTube clip.
Developers not only get all the profit, but they also get a share of the ad revenue for the site. It looks like there’s an API for doing things like leaderboards and the like, so devs can hook into the larger community features.
This is a step beyond the sort of “portal-as-publisher” model that we have seen digital distribution take on so far, and it is a really exciting one. It originated within the BlitzBasic community, with a company called Indiepath.