Oh and it would be great if this type of service was released to handhelds as well (maybe they could make their own handheld, or even source it out to Nintendo and Sony's next generation handhelds). Of course it wouldn't be using the same service, but a separate one to utilize the handhelds controls. I would love to play some of my favorite PC games on the go with something that fits in my pocket.

I like the idea of handhelds tough, I would like to be able to play all my games everywhere. But I would like to keep my PC to get it with higher quality.

Technically it doesn't kill console gaming either since you can buy a "console" version to put in your living room.

Console gaming would not be in nearly as much danger from this as PC gaming. Console gaming relies on much less standardized hardware, after all.

 iPhone handheld gaming dominance confirmed?

Need MUCH faster internet around the world. But it will be really cool but we know these companies are going to nickel and dime us more than they do now :( but i have known/figured this was going to happen eventually for years

"Cloud gaming", as I called it, is pretty old idea. As old as cloud computing. It purely depends on growth of internet population, specifically on growth of broadband interent connection. Potentially it'd kill console gaming, PC gaming techincally will rise from ashes, 'cos expanded audience of "cloud gaming" is huge. But that's quite far distant future for the same reason I mentioned above.

So what about consoles in that case? Only handhelds will survive? =)

Non-standardized console inputs will keep that from happening.

Though cloud computing, in theory, could be used in consoles too.

Wouldn't PS3 technically be fine since they have a browser that you could run this on?

How well do you think this could sell?