Wow I just found out about this OnLive thing from CO-OP Episode 104, checked it out, thought it was pretty cool, then came here and I'm quite surprised at how you guys are reacting to this.
@Razor512: console games are in the service too.
The console part of it is what sells me. I don't have an Xbox 360/PS3/Wii and I don't plan on buying any of them. But it really sucks wanting to play a new game that's only on ONE console, I HATE that soooo much. I can't play a really awesome game just because I decided on a different $500 system or I simply can't afford it.
HFC based ISP's could run this fine, I really don't see how latency could be that huge of an issue. The hardware just has to be conf'd to JUST video rendering and controller inputs. All the heavy lifting is being done by the cloud and the broadband. I know it can take a lot for all that but it's still possible to pull it off without asking your ISP to pretty please run fiber-optics to your basement. I have a 7.5Mbit connection and I think it could handle it.
Would be a LOT better to have it as a Steam type purchasing system at least. Ex. $50 for the 'console/receiver' and BUY the games online rather than a service fee. Even an option for both if someone doesn't want to pay for the system, the way ISP's do it with modems.
I don't get why this is getting slammed so much when DRM is only a software implication of the hard disc type restrictions to their systems out there now. It's the same thing as buying something for your console or PC or whatever and you can still only play it on that one thing, what's the difference? Well OK, if your internet goes down then your screwed, but in the last 10 years that's only happened to me once and it was fixed in 24 hours. Moreover I don't know anyone who I play games with who doesn't have at least 10-15mbps connections, so the idea of just carying this thing around to a buddy's place sounds awesome to me.
What's so bad about a service fee to play any game I want on demand. I bet half of you have an Xbox Live or WoW accounts (or both/more) that your paying every month. Why not give this a fair try? I'm definitely going to give it a go when it comes out.
/me waits for the flamethrowers to come out...