by Alexander 5:39 pm

Hi folks, welcome back to the Muse Games Industry Update. In our last issue we talked about the Big Three console makers’ hardware announcements coming out of E3. This time we’re gonna scope out a different kind of hardware announcement, by taking a closer look at the three new streaming game services announced recently. Here are the key players:
1) OnLive — console-killer?
o What is it: MAGIC! No seriously, it’s a box that looks like a cable modem, with a connection to the internet, as well as your TV, and has a gamepad controller. It is supposed to provide a seamless gameplay experience in your living room by streaming from the OnLive game servers, through the internet, to your TV.
o Why it’s too good to be true: If OnLive could deliver on its promises it would blow my mind, but I think in the real world it’s going to hit a brick wall. There are three huge obstacles in my opinion:
o Reliability. The best online game services still face huge server problems from time to time (Xbox Live). For OnLive, they are proposing to build a massive gaming infrastructure entirely from scratch. I can’t see how they could avoid the first two weeks of the launch being incredibly problematic, borderline broken. And then even after that I can’t imagine it functioning without a major LAG problem.
o Bandwidth. We are already on the brink of ISP’s going mental on the consumer — net neutrality is hanging by a thread. I think OnLive would push things over the edge, and ISP’s would start charging extra bandwidth fees for heavy users. Considering you are streaming 720p HD video that is going to be a lot of bandwidth.
o You don’t own the games. The only thing you have at your house is the gamepad and the magic streaming box. What if the connection goes down? And will you have permanent access to all games on the service? What if they take down a game that you really liked? It’s just not as good as having the physical media or at least a copy on your local hard drive.
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