The first time I heard of OnLive, the streaming video game on demand offering I wondered how well it would work. It's not streaming some generic old games from the Nintendo and arcade glory days, the cloud-based system is streaming games like Bioshock, GRID, and other top-notch titles.
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It streams the games with a set top box or a PC service and your broadband Internet connection. Gizmodo had some hands on time with the PC system and came away surprised by how well it worked, however, the Giz says the system is not perfect.
The test was done with a PC running Bioshock hosted on a server 50 miles from the demo. According to the test geek, level loading was as fast as when hosted on a local system. A bit of lag between the controller and the screen was noticed and is described as bad enough to not feel natural, but not enough to detract from game play. Compression and artifacting were noticed, which for those used to PC and console gaming with lush graphics could be the kiss of death for the service.