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Onlive Sold for Less than 5Million Dollars

Onlive Sold for Less than 5Million Dollars
A while ago I wrote an article about the end of Physical Gaming and the introduction of Digital Distribution and streaming service.

The End of Physical Gaming Media?


In it I wrote about different forms of on demand gaming and their benefits and downsides to them.
Quote from the article
“Onlive
With the Onlive demand service where you pay for the Game, you don’t really own a physical copy of the game and technically are paying just for the privilege of playing the game which is hosted on a server.
One good thing about this which comes to mind is you can almost play the game on any platform ranging from the humble Galaxy Tab to your PC.
downside to this is that it requires a decent internet connection 2MB being the minimum connection speed (since the graphics are processed on the servers at the end on their system, you computer can be simple and not designed for Gaming)
Which is great for people who can’t afford or want to build up a computer to play a couple of games which may interest them.
Onlive are good for a couple of things which I will admit others could learn from, for almost all games users get the chance to play a Game for 30min (not a demo but the whole game from start to finish) this allows the user to get a feel for the game and if they like it they then can rent it out for 3-day, 5-day or buy the right to play the game for Full Access.
there is also an option to go on a subscription plan and pay a flat out fee a month and play from a selection of games as much as you want.
So for Casual Gamers this is a great option as its almost no strings attached and you get to play the games whenever you like and pretty much anywhere in the world.
and for those that worry about piracy, with no physical copy to pirate it means the media is a bit more secure from being duplicated and sold on the black market.
You don’t have to worry about running out of space on your Hard drives or have to go through the process of having to uninstall some of your games from your collection to make way for your next game.
and Since the Onlive system uses its servers to store your game saves rather than a local file on your system, if the worst should happen and your computer should crash then you would be happy to know your hours of hard work are still safe.
Downsides to this in my view is the lack of a physical copy, in most cases you are paying full retail value for the game when it hits the market, so going to the shops or a retailers you could most likely pick up a Box version for much Less than that which is advertised on the market place for Onlive.
You are also at the fate of Onlive and if they think that is worth keeping the game on their servers if the demand for it should drop and not really be worth them to host anymore.
If you lose connection then you will lose the game (as in you can’t carry on playing as there is no local buffer or stored game partition on your system which the game will carry on running)
Onlive Gaming on Demand is good and Bad, as mentioned above it has its Pros and it Has its Cons. ”
Onlive had claimed to have over a million users, but in reality it only had over 1600 users on at the same time, which didn’t really make the firm profitable which did hit the original shareholders hard as a firm valued close to $2 billion dollars value plummeted, wiping out millions of pounds and dollars worth of shares in companies who had originally contributed to the service.
An example is BT who lost over 45Million pounds in investment.
In my Honest opinion Onlive had the right tools and could have made it work, it’s just the cost of the games and the thought of paying Retail price for a game which is basically like renting out a game.
something which isn’t great considering you can purchase the game from retail stores and have a physical copy.
If they had a better pricing model where the cost reflected the actual service then maybe it would have done somewhat better, who in their right mind would pay £40 to rent out a new game?.
end of the day I say rent as you are just purchasing the rights to play the game.