There's an interesting interview with a competitor of OnLive called Gaikai, which sheds some more light on cloud gaming and the technical problems to overcome:
Quote:
A day after OnLive's announcement, former Shiny boss and creative director of Acclaim, Dave Perry, revealed he also had begun work on a similar streaming games service, Gaikai, which would not require any additional hardware beyond a broadband connection.
With fellow execs Andrew Gault and Rui Pereira, Gaikai is based in Amsterdam, and claims that through its Streaming Worlds service, any PC will be able to play cutting-edge games anywhere there's an internet connection - with nothing to install, not even a browser plug-in. Initial details on the service can be seen at the Gaikai website.
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Read the interview
here.