mali said:
Oh, I see. I didn't do any research. It was just something I read casually while surfing the web. So you are basically renting the game and the server?(Just saw your edit)
I just finished watching an hour-long presentation about it. Basically the model is this, you pay a subscription fee for access to OnLive, then it's up to the game publishers to charge for content. Demos are free, then there will be rentals, purchases, subscriptions, episodic purchases (buy a level at a time), or whatever else the publisher decides to do. (They likened their model to xbox live, where you pay to get gold live service, and then pay for content as well, where content does not have a flat rate.) I don't really think that I'd ever want to buy a game on such a service, just in case the company went out of business, I would lose access to my content. But rentals or subscriptions I would be interested in. They are also only in beta right now, so my guess is that their pricing structure could change.
In terms of how it works, it's pretty complicated, but basically they are leasing servers (upgrading to the latest and greatest hardware every 6 months) and running virtual machines for the games. Higher-end games might get an entire gpu, mid-range games might share a gpu, and low-end games may even be run on the cpu. They have put a lot into limiting the latency to 80ms (what they feel is not perceptible), and have a special algorithm and video codec that is hardware encoded on their end for gaming, as well as a second stream that is hardware encoded for viewing clips of the game (played by you or someone else). Apparently, they designed the live gaming stream such that it works with a connection that's not completely reliable, and as long as you've got a 1.5mbps (SD) or 5mbps (HD) connection you're good to go.
From there, the game is the game. They talked about sports tournaments where they would get teams of players to play against each other, and then multi-cast the game to up to 100,000 people, who all feed in their voices back to the game for a live stadium effect.
One issue at the moment appears to be a lack of linux support. They have iphone support (looked like he was playing a game from his iphone), but we'll have to wait and see if we get supported. Hopefully Craig sends some good beer.