...but Streaming countless hours of HD Video to play a game will result in most people being charge bandwidth overages.
Can someone here do the math? I have 60Megabit download and 3Megabit Upload with a 180Gigabyte Bandwidth limit per month (meaning streaming would be no problem but I think bandwidth would be). If I were to average 5 hours a day of gaming on OnLive in 1080p how much bandwidth would I use in a month?
Proof of my connection: http://www.speedtest.net/result/1361750358.png
If the licensing fees kicked back to the console companies are high enough, they'll no doubt love this idea. Getting a licensing fee for every OnLive sale, and no physical media to end up in second-hand shops, it's a win/win. But, OnLive needs to realize that licensing fees are HUGE for the console makers - they often sell the hardware at little margin (or even at a loss early on) and make the bulk of their money on the fee they get for every title sold for that hardware.
It'll be interesting to see how/if negotiations work out.