BLOG and VIDEO: can it live up to the hype?

A new company today made an announcement that could change the way the world plays video games, and spell the end of the dominance of the PlayStation, Xbox and Wii.

Onlive promises to be a revolutionary, on-demand video game platform that will deliver graphically advanced games instantly over the internet, so you can play them on any compatible device.

The service cuts out the need for proprietary consoles - undermining the multi-billion-pound business models of Nintendo, Sony and Microsoft.

Onlive launched at the Game Developers Conference in San Francisco after seven years of development. Behind the company is Steve Perlman, a respected entrepreneur, who has already obtained the backing of several big publishing and deveopment names in video games, including Electronic Arts, Ubisoft, Take-Two Interactive Software, Warner Bros. Interactive Entertainment, THQ Inc., Epic Games, Eidos and Atari Interactive.

Mr Perlman says he has developed a data compression technology that allows games to be powered on remote servers, rather than on game consoles. Users will not need to buy games in stores but will be able to play them as they are streamed across the network - without downloading them.

Those who have seen the product demonstrated report that there appears to be no time lag on even highly advanced games - a hugely important part of the user experience.

Mr Perlman said: “OnLive is the most powerful game system in the world. No high-end hardware, no upgrades, no endless downloads, no discs, no recalls, no obsolescence. With OnLive, your video game experience is always state-of-the-art. With OnLive we’ve cleared the last remaining hurdle for the video games industry: effective online distribution.”

“By putting the value back into the games themselves and removing the reliance on expensive, short-lived hardware, we are dramatically shifting the economics of the industry. Delivering games instantly to the digital living room is the promise game fans have been waiting for and OnLive makes that promise a reality that’s affordable, flexible and focused on their individual needs."

Users have to buy a small "MicroConsole" that connects most TVs and home broadband connections to the Onlive service. The game is played on a functional Onlive wireless controller. Users need to have minimum broadband connections to take advantage of the streamed service. For standard-definition play, that would mean a minimum 1.5Mb per second connection, and for high-def, 5Mbps.

For the moment, this might put the high definition service beyond the reach of many British consumers. In January, Ofcom criticised many British broadband providers for failing to live up to the speeds they advertised. Ofcom found that many people paying a premium for speeds of up to 8Mbps were receiving only 4.3Mbps.

The Onlive service aims to support a gaming community across the world. The user interface allows video game fans to watch thousands of live games in action, join in at any point, share their exploits with friends through social networking tools, or make "Brag Clips" that showcase their skills. With OnLive, gamers have immediate access to demos and can instantly try, buy and play top-tier games, whether playing solo or with friends.

Onlive claims that the new technology “breaks the console cycle" so that gamers have to upgrade their hardware every few years. Publishers appear to be enthusiastic about the new service as it will give them much more efficient distribution models than selling their games through retail channels.

Onlive will demonstrate 16 games being played at the Conference, which runs until March 27.

The service will be offered through a monthly subscription, launching towards the end of 2009. Prices are expected to be tiered, in relation to the retail price of a given game.

Successful on-demand high-end video gaming has been a goal of developers for years, and several attempts have failed. But the increase in broadband availability and the potential of the compression technology may make Onlive a serious contender, and a serious rival to the established games industry - if it lives up to its promises. The company's website Onlive.com will go live on March 24.

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