Online game-playing could be game-changer

[Citizenmanman]

Came across this and thought it was pretty interesting....

"(03-24) 16:15 PDT SAN FRANCISCO -- A new streaming online game system introduced Tuesday by San Francisco startup OnLive could make console and PC video games much more accessible - at the same time it threatens gaming hardware sales.

The OnLive Game Service, seven years in the making, brings the concept of "cloud computing" to gaming, allowing remote computers to do the heavy processing while users play on simple PCs or televisions that have an Internet connection. Instead of relying on hardware in the home, OnLive makes the investment in robust datacenters that can stream the game play with one-millisecond of lag.

For players, especially newcomers to the field, OnLive offers the chance to get into the game without having to plunk down hundreds of dollars for a console or high-end gaming PC. And over the long term, the service allows gamers to play instantly without having to worry about downloads, discs or eventual hardware upgrades.

"We're giving access to people who don't have access," said Steve Perlman, founder and CEO of OnLive. "We've moved hardware out of the equation."

For publishers, the service provides a piracy-proof way to deliver games to users, bypassing traditional brick-and-mortar retailers. Meanwhile, gaming companies can expand their pitch to a wider audience.

"OnLive fits into our digital strategy, which is to grow the marketplace for games and bring content to as many distribution points as possible," said Scott Guthrie, executive vice president of software publisher THQ.

In addition to THQ, at least nine publishers have signed on with OnLive, including heavyweights Electronic Arts, Ubisoft, Take-Two Interactive Software and Warner Bros. Interactive Entertainment. OnLive will be showing off 16 current PC and console games at the Game Developers Conference in San Francisco this week.

OnLive Game Service is expected to be available by this winter and will be offered through a monthly subscription with multiple tiers and packages.

Users will need to have a high-speed broadband connection of 1.5 megabits per second for standard definition resolution or 5 megabits per second for a high-definition 720p picture. And if they connect to a TV, they'll need to buy a small OnLive MicroConsole, a palm-sized device that connects the TV to the Internet. MicroConsole users also will need to buy controllers that plug into the device or connect wirelessly. Pricing has not been set for the service or the MicroConsole, though Perlman said the device is cheap enough that OnLive is considering including it in the cost of a subscription.

PC and Mac owners using the most "entry-level" computers will be able to play with a mouse and keyboard using a plug-in program for their browser.

Perlman, who has worked at Atari and Apple and produced the Quicktime video software, believes that PC users will be more likely to pick up the service initially but over time, he expects 80 percent of users to play games over their television.

The service will feature community tools including avatars and the ability to make and share "brag clips," short videos of your game highlights. Users also can play multiplayer matches, spectate on other gamers and track leader boards for popular titles.

Publishers said they are still committed to both their retail and console hardware partners but see OnLive as complementary service that can help them expand their business.

Retail stores and consoles, "have a long and healthy future in front of them," said Laurent Detoc, North American president of Ubisoft. "OnLive simply offers us another complementary channel of distribution to reach our fans."

The console makers, however, understandably have not partnered with OnLive, so it's highly unlikely games from Nintendo, Microsoft or Sony's own studios will appear there. Sony Computer Entertainment America said it was not concerned with the threat posed by OnLive.

"With both digitally distributed and disk-based content, we have a competitive offering for consumers, whether they are tethered to the Internet or not," said Patrick Seybold, a spokesman for Sony. "We're confident in our approach and have a proven legacy that validates our long term value proposition."

Michael Pachter, an analyst with Wedbush Morgan Securities, said if marketed and operated well, OnLive could pose a threat to gaming console makers down the road. And OnLive could create a wide lead over competing services if it presses its first-mover advantage. But, he said, much will come down to the pricing of the service and the value people perceive from an online subscription service.

"Depending on what business model these guys adopt, they could be wildly successful or a footnote in history," Pachter said. "We just don't know yet."

Not only will the pricing determine much of the success of OnLive, but its performance must be able to scale to handle millions of users without any slowdowns. Analyst Billy Pidgeon of IDC said OnLive is serving as a demonstration of serious cloud computing.

"We have to see how well it handles the load," Pidgeon said. "This will be a major stress test."

E-mail Ryan Kim at [email protected]."

Source Link: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/03/24/BUS416LJH7.DTL&type=business

[Suikojin]

I read about this also. Sounds pretty cool. Just want to know what games they will have for it and how much this thing will cost per month.