Can OnLive Really Overturn the Gaming Industry?

onlive_logoToday everyone who follows the gaming industry is talking about OnLive, an upcoming service incubated by Rearden, the venture company of Web TV Founder Steve Perlman. The system, which streams high-end video games to pretty much any PC, Mac, or TV with a broadband connection, was set to be officially unveiled tonight during the Game Developers Conference in San Francisco, but was pushed out earlier after the embargo on it was broken last night.

But can it really turn the gaming industry upside down, the way so many are predicting (as here, here, and here)? I attended a hands-on demo yesterday, and OnLive performed impressively, quickly delivering top games with a great frame rate, in a way that solves multiple problems plaguing large game publishers, such as piracy and low profit margins via retail sales.
However, even assuming the service works that well when it goes live to consumers this winter, at least three factors could hamper its adoption: Read More about Can OnLive Really Overturn the Gaming Industry?