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Internet connection speeds and bandwidth useage are actually the least of the problems here...
Latency is one of the biggest issues...
This type of service can't do ANY client side prediction its all upto tricks in the returned image(s) to blur the time between inputing a command and it having an effect and except for very casual gamers its just going to feel horrid... we'd need sub 8ms ping times to the host and less than 2ms processing time to offset this...
The other problem is going to be encoder lag... there is no way the encoder is going to be able to spit out heavily compressed high quality images in a short enough time to not compound the already severe latency issues.
Moving the console to the cloud under OnLive's architecture could be expected to add under 40ms to the response time. This is 25% of our maximum acceptable response time (160ms) and 40% of our "good" response time (100ms). Clearly some games could get away with this additional response time without too much trouble, but some of the high-end console games would have problems.
OnLive appears to be using entirely PC hardware in their architecture. High powered PCs (and optimised game code) could reduce this latency even further. From the analysis above plugging in existing consoles to the OnLive network probably would not work for many games, even if the manufacturers agree
You every tried that? it doesnt work its far too jumpy.It's essentially playing games via Remote-Desktop/VNC over the internet :/
10 million users playing at one time?
Looking at the Counterstrike: Source statistics... at peak today there were 111,309 users online at the same time.
I guess not in theory..
you only need a 5mb connection