A download and data transfer gaming system utilizes a hybrid peer-to-peer, segmented file distribution protocol to vastly improve the download capabilities of a gaming system by improving the upload cost burdened by the download host. The system redistributes this cost to the download clients by allowing clients on the gaming system to upload pieces of a file to each other. This system is much more redundant by eliminating the possibility of a client missing a download broadcast. The system alleviates this possibility of missing packets and bad data integrity by using SHA-1 verification of the file pieces. The benefits of the improved bandwidth capabilities enable the download of much larger files, thus enhancing the game play experience.