The annual Games Developer Conference in San Francisco featured the beta launch of OnLive, a streaming game service. The excellent gaming blog Kotaku has a first-look review; in a nutshell OnLive is cloud gaming. Connect a low-end PC/Mac with a wireless connection, or OnLive's own 'micro-console' (no GPU!) to your TV, subscribe to the service and you're off. Browse through the latest games, demo and play: hi-res video (including HD) is streamed and your responses sent back to the OnLive servers. Remote multiplayer gaming is also possible. A few years ago I would have scoffed that internet latency would make this unworkable, but having played Mario Kart Wii and Super Smash Bros against players from Japan, with no noticeable lag, I don't think it's impossible to also have the game in the cloud (not just the player reactions). OnLive promise sub-milisecond ping, although for more complex games a fat internet connection would be my choice...

Major cross-platform publishers are already signed up, although some who target specific consoles (such as Namco and Microsoft) are understandably silent so far in order to promote PS3 and XBox Live online communities. The benefit for cross-platform publishers is that to enable new customers they don't need a new console and game - just the game. The OnLive SDK is apparantly a simple plug-in. And of course, the consumer doesn't need to upgrade to a faster CPU, GPU or RAM with console upgrades.

A similar product which has run for some time is Gametap which allows play of older console titles via their DRM-locked game emulators, for a subscription (altihough some games are free/ad-funded). The difference there is that the games are limited by the client, i.e. your PC must be of a minimum speed/memory/video capability. No problem for older arcade games, but OnLive is now enabling the likes of Mirror's Edge and Crysis on low-end PCs.

The mobile angle? While I'm not a great believer in, say, First Person Shooters or driving games on a mobile (simply because your thumbs weren't built that way and the screens are small) I can see, for example, World Of Warcraft mini-games being streamed to phones to acquire in game credits for your 'big screen' experience later. Of course, mobile network latency will need to provide the same QoS that OnLive promise on the internet; but I can see the attraction to mobile games developers to publish a game to the OnLive 'cloud' and have less worries about porting to various OS.