OnLive is a fairly simple idea. Instead of using a console or a computer to run a game for you, the system uses a server over the internet. It's the implications of that idea that, if they work, are nothing short of revolutionary. Your controller or keyboard sends your input over the internet, to an OnLive server which then bounces back to you the result of your action onscreen. There's no physical disc, and not even any download time - you can start a 30-minute game demo in seconds, for free. Or rent or buy games that are linked to your account (UK pricing hasn't been announced yet, US pricing is typically around $5 for a three-day rental, $50 for a new game). And that means you can take them anywhere, play them on anything.
The same game, with progress tracked, can be played on a PC, Mac, big-screen TV with a ‘micro-console’ and controller, Android tablet or iPad (from this autumn) and even, in the future, on an internet-enabled TV or Blu-ray player. So you can start a game at work in your lunchtime, continue it on a tablet on wi-fi on the way home and finish it on your big TV. For games companies, that means no piracy, and no physical distribution hassles. For gamers, as well as portability and instant availability, it also means you can watch anyone else's game (even talk to them while they play), from a megalomania-inducing bank of screens of games happening right that second.
More information:
http://games.uk.msn.com/previews/will-onlive-kill-the-console-14092011
More information:
http://games.uk.msn.com/previews/will-onlive-kill-the-console-14092011