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Death knell for game consoles?

Traditional video games consoles will soon be replaced
25 March 2009 10:18am

It seems video games can be streamed over the internet...

A start-up founded by technology entrepreneur Steve Perlman says it has developed a technology to deliver video games on demand, an idea that threatens to eventually take consoles out of the equation.

OnLive, Perlman's Palo Alto, California-based company, plans to unveil its technology at the Game Developers Conference in San Francisco.

Seven years in the works, OnLive says it has developed a way to stream video games without any lag that humans can notice. So the instant you press a button to shoot something on the screen, the gun goes off.

This has not been possible before, because unlike with music and movies, which can be compressed - or put into smaller files that are more easily transferred online - before being streamed, video games are interactive and require instant responses.

That has meant video games needed to be played on consoles packed with computing power, like the Xbox or the PlayStation, or downloaded to personal computers that could process some of the data that enabled games to run.

OnLive's technology gets around that limitation with a new form of compression that lets its game servers communicate with players over broadband connections in real time.

This also means OnLive's service can work on older computers, even those without a graphics processing unit that has until now been an essential component of gaming. Through a 'MicroConsole' about the size of a cassette tape, OnLive's service will also be available for television sets.

In a recent demonstration, OnLive showed off Crysis, a complex shooter game that's currently only available for PCs, played on a TV set through the little "console" and on a Mac laptop.

OnLive says it would be difficult for its users to exceed the monthly bandwidth caps that internet service providers are increasingly placing on their subscribers. A typical user would have to play about 284 hours - nearly 12 full days - to consume Comcast's 250-gigabyte cap. Nielsen Co estimates many gamers play roughly 60 hours a month.