OnLive is a new game streaming service still in beta that leverages the ideas of cloud computing and data streaming to produce the ultimate video game console. By using a game server center and a high bandwidth connection, OnLive is able to stream games seamlessly to the PC, Mac or a television via an Onlive MicroConsole.
What are the advantages of Onlive?
One advantage for the OnLive service is the ability to do away with costly console upgrades. Historically, video game consoles have a lifespan of about four to six years before the next generation of console begins replacing it. For example, Microsoft's Xbox console debuted in November of 2001, and its successor, the Xbox 360, made its appearance in November of 2005.
But because the OnLive service is streamed from central game servers, the service can upgrade to the newest technology without the need for each individual to purchase new hardware. So, the games keep getting better and better without the high cost of a new console.
Another neat feature is the ability to play with your friends regardless of whether they are playing on a PC, Mac or the MicroConsole. OnLive is even working to bring the service to smartphones, with a recent demonstration at the Wedbush Financial Conference in New York streaming a game simultaneously to two iPhones.
How does OnLive work?
OnLive works by sending controller actions and keyboard commands up to the server and then streaming the results back down, similar to how Netflix InstantAccess and other video streaming services work. This means even games that require a high performance computer can be played on entry level machines.

