Dude, that's local streaming. That isn't dealing with all the limitations through the Internet.

Well, the difference between this and Onlive is that this ha the PS fanbase behind it, that makes a big difference :).

Sony

in a word: sony.

sony has a massive catalog of ps1/2/3 and psp games to draw from.  sony has strong ties to activision, ubisoft, take two, konami, sqauare, and all the rest of the big publishers.  sony has an established active userbase. 

onlive was a start-up with no real industry ties that never got so much as a decent catalog of games.

sony can do what onlive can't,. create a service worth using.     I think MS could be sucessful here too.   ...but no one else.

it's like wii and motion controls.   not actual new but brought forth at the right time by the right company in the right way.

not true...

Hands-on with PlayStation Now: It works!

By Michael McWhertor on Jan 07, 2014 at 3:33p

Sony's game-streaming service, PlayStation Now, is here, bringing with it a massive library of the PlayStation's back catalog to devices never designed to play them.

With the subscription and rental-based PlayStation Now, PlayStation Vita owners will be able to play games like The Last of Us on a handheld. Bravia TV owners won't even need a dedicated console. The service could boost the PlayStation 4's library with thousands of new and old titles, essentially bringing much-needed backwards compatibility to the new console.

Even better, based on our hands-on time with PlayStation Now, it works.

Performance in games like The Last of Us and God of War: Ascension was impressive. Lag input was noticeable, seemingly more so on Vita when moving The Last of Us' Joel and waiting a beat for him to respond, but more than playable. Even the higher frame rate, faster paced action of Ascension was playable, though compression artifacts and more muted colors were present.

But the technology is striking, to say the least; these are capable, playable versions of PS3 games without the need for a dedicated console. Despite the small amount of latency, PlayStation Now already feels like a viable game-streaming option.

At CES, Sony showed PlayStation Now working on a Bravia TV and PlayStation Vita, with a handful of PlayStation 3 games playable: The Last of Us, God of War: Ascension, Puppeteer and Beyond: Two Souls. Sony reps said those games aren't necessarily indicative of what titles PlayStation Now will launch with later this year, but confirmed that the focus, at least initially, is on bringing PS3 games to the service.

Jack Buser, senior director of PlayStation Digital Platforms, told Polygon that a wide variety of titles are planned for PlayStation Now, but he wouldn't confirm whether both first-party and third-party titles would be available at launch — though it certainly sounded like they would be.

Buser also couldn't offer details on how the Gaikai-powered streaming technology would work, declining to say whether Now users would be playing on dedicated, remote PS3 hardware or virtual machines that emulate PS3 hardware. Also unclear is just how rentals and subscriptions will work, or whether they'll be part of Sony's PlayStation Plus service. Reps declined to comment when asked.

Reps could confirm that people who play multiplayer games on PlayStation Now would be able to play with others using more traditional means. A PlayStation Now subscriber playing The Last of Us multiplayer, for example, can be matched with others playing the same game on a PS3 Blu-ray disc, a Sony rep said.

PlayStation Now on non-PlayStation hardware, like the Bravia TV on display at CES, will work with DualShock 3 controllers. They'll require a one-time sync over USB, but should connect via Bluetooth for further play. On PlayStation Vita, a graphical overlay displayed at the top of the screen shows that the handheld's back touch panel will be split into four quadrants to compensate for the fewer number of buttons.

Expect to see PlayStation Now for yourself starting later this month, when Sony plans to roll out a limited, external beta. The service is slated to release sometime this summer.

PlayStation Now is targeting PlayStation devices (PS3, PS4, Vita) first, then other Sony devices, like Bravia TVs and tablets. Support for non-Sony devices will come afterward.

source

Getting access to Sony games without having to buy Sony hardware. Playing Sony titles such as GT, TLoU, Tearaway or collections like Journey or I&SotC, on your well spent iPad instead of having to buy a Vita (subjective remark... service could only be compatible with Sony compatible hardware such as Sony's Android phones/tablets/PCs).

This could make Sony hardware less desirable as it can be substitued by the service at the cost of a bigger audience.
Obviously the technology is still young and you'll have cons such as game catalog, lag... region locks and price?

Still, could be a nice way to try some games, maybe some people decide to get a Vita or PS4 if they like a game.

It's like Netflix for video games, this could be big. Of course it all depends on your internet connection, hopefully Sony gives people a way to test their connection speeds before subscribing.

read the post. Onlive does the exact same thing, people. I don't see why suddenly, it becomes something new when another company does it.

The difference has already been stated, Sony has a huge collection of games, close ties to publishers, and a huge fanbase. None of which Onlive had.

The difference is like when people get more excited for the Apple iPhone 6 and the Hitatchi ePhone 6. Two phones that are very similar (both have touchscreens, apps, etc.) but which one will most people care about?

I think its because people are expecting to get it with their PS+ subscriptions which they are paying for anyway, and having the ability to play their digital games on other systems which they have also already paid for.
That would be a fair deal.

But if sony come out and say you need to re-purchase digital games and/or pay for another subscription, its screwed.

If this does become extremely popular, sony will need more servers than MS to handle the demand.