Abstracting hardware: obsolescence obsolete (with OnLive)

March 25th, 2009 • 1 comment
Tags: cloud, cloud computing, digital distribution, Gaming, mac, OnLive, pc, pc games, pc gaming, Windows

Most everyone has heard the news of OnLive, the new cloud-based computer gaming platform. I’m not here to regurgitate that for you. Instead, I intend to give it some context.

Cloud computing is all the rage right now. With netbooks growing in popularity, all sorts of Internet-based services are popping up to make the experience of owning a netbook more rich. OnLive applies this model to PC gaming while broadening its appeal way beyond the netbook crowd. Where an app like Google Documents might outsource a little processor load and some data storage, OnLive’s system will send all of the intense load to your CPU and graphics card associated with PC gaming to a monstrous computer hundreds of miles away. The benefits are clear. While existing web apps have sold themselves to the typical PC user on convenience (e.g. the ability to access documents anywhere), this is the only service I can think of that has a chance to sell itself by saving gamers significant money on the hardware that is typically necessary to run these intensive games… not to mention the dedication to keep up with frequent upgrades just to maintain the performance status-quo. An entry-level gaming PC is going to cost around $800. This system enables a $300 netbook to do the same thing by relegating every task associated with the game other than actual display of the resulting video stream.

There are also implications here for the established modes of game distribution. In my most recent post, I discussed a possibility for a new model of game distribution that does away with the physical product altogether, but that proposition did not suggest any fundamental shifts in the way gaming works—only the way they are distributed. Digital distribution platforms have gained significant popularity over the past year. OnLive’s distribution model is digital, but it seems to be something of a hybrid between GameTap and Steam. I honestly don’t understand the model entirely, but Steve Perlman claimed in an interview there will be tiers of service which suggests a subscription model while the interface’s options for either buying or renting any given title suggests a more traditional model of paying per title. This is serious competition on either front. Steam will have difficulty as games that are available for both services will have significantly lower requirements through OnLive. Subscription services like GameTap typically serve so-called “casual” gamers better and contain few if any new release hardcore games. OnLive is coming into this with major partnerships with huge publishers (and committments for simultaneous release with retail) to give it some more muscle.

For the numerous advantages, this service already has a few small disadvantages I can see. First, the max resolution being quoted right now is 720p which is a bit behind the times. I understand there are now Internet bandwidth considerations as the resolution increases, and I’m sure that is the reason for this choice. It doesn’t make it any better for gamers that crave high fidelity experience with their PC gaming and are accustomed to running 1920×1200 or higher resolutions on their PCs. Second, with any digital distribution model comes concerns about consumer issues. As with other similar platforms, many consumers will likely not be comfortable with the license they are actually purchasing. Every software purchase is merely a license whether or not you receive a physical product, but, frankly, it is much easier for software publishers to enforce unreasonable demands in a license while they still control the software. If I have a disc, I can always resell it whereas a digital software purchase may be impossible to transfer.

For all my excitement, I am sceptical. It sounds much to good to be true. The only way we’ll know (before an actual launch, that is) is by getting in on the beta which should start this summer. If OnLive launches at an attractive price, good performance, and reasonable licensing agreements, this may be the Trojan horse that brings PC gaming back to the forefront.