Can OnLive Compete in the Video Game Console Wars?

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OnLive, the cloud-based gaming company, is gearing up for the release of its gaming console hitting stores December 2.  Until now, the company basically allowed players to stream games online, including popular titles like Borderlands, Batman: Arkham Asylum, NBA 2K11 and Shaun White Skateboarding, for a set fee. The $99 console will allow users to play these games directly on their television and is available for pre-order now.

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Streaming games has always been a problem due to the fact that video game actions require an immediate response and need a high quality of graphics, unlike music and movies which can be made into smaller files (and it won’t ruin the song or movie to have to deal with some buffering time). According to the AP, OnLive believes their new technology allows game servers to keep up with players. Instead of having to buy the physical disk or rent it at a local video store, games can be rented via the Internet with prices ranging from $4 to $50. Right now, the company offers around 40 titles for streaming.

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The console will include one free game download, valued at up to $50 value. The company, headed by CEO Steve Pearlman — a former Apple employee who led the development of Quicktime and WebTV — hopes to beef up their titles with newer games including the recently released Assassin’s Creed: Brotherhood and the much-anticipated F.3.A.R, which is scheduled for release in March 2011. They also hope to expand to the UK, Belgium and Luxemburg after OnLive’s presence is established in the United States.

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