vlad321 said:
Oh, well you can permanently rent the game, as in buy it as well for a given amount. The biggest problem I have seen with OnLive is the fact that the graphics are not top notch. As for why it will rpelace consoles, it's because it's would, theoretically, offer what you get on the consoles. No hassles, no worrying about hardware, plug and play, etc. In fact it is out consoling the HD consoles in those terms since you don't even have to deal with installs or hardware failures. If done right OnLive will steal away console sales easily. Now for the PC, it has far more features than the consoles, so the people who want them will still be able to get them on the PC, and not on OnLive. Basically it has all the benefits of a console and does them better, and none of the benefits of the PC.
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It doesn't offer any of the features of consoles. First it's based on PC gaming, thus your lineup will be PC games. Nintendo, Sony and Microsoft will not support it. Thus you're going to get PC games on it, with PC controls, PC features, and there are very many types of games console gamers are accustomed to that are not heavily prevalent on the PC(Sports, Fighting, Racing, etc). Secondly, PC gaming is traditionally solo play software and/or online multiplayer, and the big console audience demands local multiplayer focused software(the Wii). Also since your main method of control is going to be keyboard and mouse, you'll never attract anyone but PC gamers or those interested in PC gaming. The Wii's audience isn't going to trade in the Wiimote, the multiplayer focused Wii Sports and their family and friends in the same room for a keyboard and mouse, Starcraft II and an online opponent.
Third it's anti-retail in nature and anti-gift in nature also. Retailers will not set up large amounts of shelving space for Onlive, since it won't have a large amount of products attached to it. After the initial investment in it, where does the gift giving come from? How do I walk into Target and get someone an Onlive game for Christmas?
It should be obvious that this is an alternative to PC gaming for those that want their PC games without the hassles that come along with it. They get their games, and they give up performance for ease of use. Consoles will be largely unaffected by this in it's current form.