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OnLive could have been a classical disruptive product aimed at home consoles and actually everything else that plays graphics-heavy games. The problem is that it may not work for mass consumer at this level of technology, so as disruptive product it can't be aimed at low-end consumer, in fact it looks like more of an enthusiast's toy due to bandwidth requirements and subscription (maybe they should work out some other ways of monetization, smth more accessible than subscription, smth like F2P). If we assume it would work practically everywhere (not only in ideal conditions of E3 demo) even with low-resolution and low fps, it may be a good choice over home consoles and powerful PC rig, while both X360/PS3 are screwed at this case (Wii due to different approach to games might have a chance to survive). Luckily for them it seems it's a science fiction at this point at least in eyes of mass market consumer.