It wasn't actually on the show floor, but inside an actual home ... as in luxury downtown condo that no one actually lives in. OnLive rented the place for the experience, and the service was running over a normal at-home internet connection.

As proof, it showed off an actual Time Warner cable modem to prove that the experience was real, complete with blinking lights (pictured above) and bundles of cables.

However, we were assured that it was running off a bank of machines in Santa Clara, almost 350 miles away. We played a shooter, a racing game, and a flight simulator, and a first-person action game (we weren't allowed to disclose titles) on a big LCD television in the living room through its microconsole, and on a MacBook Pro running the service via the browser plugin. We used a prototype of their Xbox-style controller on the TV, and tried out both a mouse and keyboard combination, and a Logitech game controller on the laptop.

http://www.joystiq.com/2009/06/03/impressions-online-and-live-with-onlive/

I don't think they should release the console just the PC service this year.  I want to use this on campus.

Yeah, they say it worked pretty well with single player games but think that multi player ones will most likely not work very well.

Down with Onlive!!

The question is how much, and what will be the maximum load...

Perhaps they can be like FF 14 and offer it for free, once you buy the system...that would attract alot of interest. I'm actually interested in the darn thing, because if you have to travel, this looks like a great solution to gaming problems. This thing would work great in my hotel rooms.

The lag on online games would be deadly =/

SO it would be like playing dual analog for the mouse people.