With all the rumblings of the PSP 4000 going with download only software, OnLive wants you to ditch your home console for thier “low cost” micro console where there are no physical games and everything is downloadable.  Here’s a quote:

The brainchild of Rearden Studios founder Steve Perlman, formerly of Atari, Apple, WebTV and more, and Mike McGarvey, formerly of Eidos, the technology looks to revolutionize the way computer games are brought home. Instead of spending hundreds or thousands of dollars on the latest video game hardware that will make games like Crysis playable at nearly maxed settings, let OnLive’s servers handle the processing. All that’s required is a low cost “micro console” or a low end PC and a broadband internet connection.  Using patented video compression in tandem with algorithms that compensate for lag, jitter and packet loss, OnLive delivers video at up to 720p resolution at frame rates up to 60 frames per second. Of course, the quality of the video feed relies on your connection.

While my ComScam connection is fairly fast, it bottlenecks frequently and I don’t think I would want to rely on my wavering connection to play games at only 720p.  Bloop.  Where’s the pic of the controller?  Consider me not sold.

[Geekologie]