Eurogamer have a very interesting article, entitled "Why OnLive Can't Possibly Work Article"... which not surprisingly tries to debunk OnLive. Nonetheless, it's a very interesting read!
Quote:
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The concept is remarkably simple. The actual hardware generating the visuals and running the gameplay isn't owned by you. Instead it's held somewhere else in the world. That hardware then encodes its visual output and beams it to you over the internet. The player sitting at home simply uses an existing PC or Mac (or 'micro-console') to take the video stream over IP, beaming back control inputs to the server. The advantages are very straightforward - you don't need to upgrade your hardware, the people running the servers do. And that hardware can be state-of-the-art PC kit way in advance of what Xbox 360 or PS3 are capable of, and of course it's upgradable. You'll never need to buy a game again; you'll just rent time on the ones you want to play. You'll doubtless save money and the publishers will make more of it. Piracy will be impossible.
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http://www.eurogamer.net/articles/gd...y-work-article