I was wondering when Malstrom would talk about this. This seemed like the kind of thing that would get his interests.
OnLive was a dumb investment by dumb investors
Third, and most important, the hardware barrier isn’t set in stone. Like all things, prices drop and hardware shrinks. The HD Twins will keep getting cheaper. Already, the Xbox 360 is cheaper than the Wii. PC hardware keeps getting cheaper. Netbooks don’t have the power to run the best looking games, of course, but in a few years netbooks will have more capability. And is it worth hooking up that OnLive apparatus to a tiny Netbook or even TV? It would be much simpler to just buy the hardware itself since it is only a couple hundred dollars. Due to subscription rates and how gaming habits (unlike movie or TV habits) are erratic, it’ll likely be cheaper to just buy the hardware. Fourth, there won’t be future generations of ‘graphics’. Someone might respond to the previous point and say, “Golly, it doesn’t matter if prices for current hardware drops. There will be the Next Generation! And this will solve that Next Generation!” But there won’t be any ‘next generation’ as we traditionally know. There won’t be a, say, Super HD Generation because graphics have reached ‘good enough’ where improvements won’t be seen by customers and because it would break the bank on producing games. The shift has gone toward user interface. The next generation will be upgrades and changes in user interface, not graphics. OnLive is a solution to a problem that is fast approaching a deadend. This isn’t occuring just on consoles but PCs as well.
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