Gamertell

With the major announcement of OnLive, a gaming service that allows anyone to play any game on a TV, PC or Mac, speculation that major game consoles are finished has begun. It’s a bit premature, since the OnLive external beta hasn’t even begun and the service itself isn’t launching commercially until 2009, but still. Everyone lives to gossip about a potentially revolutionary new product.

The thing is, even if OnLive is the second coming that many gaming and technological outfits are making it out to be, it still isn’t going to be a console killer. The new service will likely coexist peacefully with the current systems and find its own niche (possibly in hotels, teen centers or dentists’ offices), rather than completely overrunning the industry.

When OnLive launches, people have a lot of things to consider before they join up. People have to look at if the service is compatible with their internet options and computers. They also have to see if they can afford the service and its necessary equipment and games. OnLive’s reliability and the users’ internet stability will also be a deciding factor. Finally, game collectors may not be as enthused about owning a digital copy of a game that could disappear if OnLive shut down.

Compatibility issues may keep people from using OnLive.

OnLive requires a reliable broadband internet connection with 1.5mbps for standard definition presentation and 5mbps for 720p60 HDTV presentation. A lot of people may just assume that at this point in time, everyone has some sort of high speed internet plan. It isn’t a guaranteed thing. With people trying to cut back on bills and excess spending, internet could be one of the luxuries cut since people can always visit a local library for free Wi-Fi.

So for people or families who are just barely making it in these times, or who may not have a plan with the internet speed required to use OnLive, a console or handheld system will be their only alternative.

OnLive may not be affordable for everyone.

Price is going to be a deciding factor for OnLive. When someone purchases a hard copy of a console game, or even a console, he always know in the back of his mind that if it isn’t any good, it can be returned or resold. Or, if someone is unsure about a game, he can wait until a used copy is available at a cheaper price.

At the moment, people have no idea what OnLive is going to cost. The OnLive MicroConsole is going to undoubtedly cost money. In addition, there may even be a subscription price to access the service. Finally, figure in the cost of purchasing a game so users can actually play it. OnLive’s promised free demos, but users can’t live on demos alone. Eventually, they would have to spring for a rental or full game.

OnLive or a users’ internet service provider could have reliability issues.

When people OnLive, they’re dependent on the internet. If there’s an outage, they have no access to their games. Anyone who’s been without power or cable for a week knows how delicate the lines can be and how agonizing it can be just waiting for the repairmen to get to your area and fix things.

Users are also dependent on the OnLive service itself. If something where to happen at the company’s source that erased data or temporarily shut down the system, there’d be absolutely nothing people could do about it aside from waiting. There’s no guarantee that users would even know what’s going on, or how long it would take for service to return.

While consoles and hard copies of games aren’t steadfast and invincible (RROD anyone?), at least they’re right in the same room. Users aren’t dependent on an outside source for your gaming. If the internet goes down, play a single-player game. And if something that does hinder game happens, a disc gets scratched or a console dies, users know exactly what’s gone wrong, have their own repair options to pick from and will know exactly how long they’ll have to wait to play.

Collectors may take issue with OnLive.

Many video game players also happen to be collectors. When they find or hear about an interesting game, they purchase it and cherish it. It becomes a fond memory and a part of his or her past. Even after the game’s been beaten, it will still have a place of honor on the game shelf or in the game wallet.

With OnLive, a person is purchasing access to a digital copy of the game that exists at OnLive’s data center. OnLive hasn’t offered any information on its site discussing what happens if the company fails within a few years. If something happens to OnLive, there’s a good chance access to that game is lost forever. Users would have to go out and purchase a hard copy of the game if they wanted to play it again.

There are also aspects of a game collection gamers lose if a move is made to OnLive. Showing off a collection loses a bit of its glamour when all someone needs to do is log into OnLive and show the titles on the screen. Seeing the actual boxes and possible preorder bonuses is much more impressive. And forget about lending or borrowing games.

OnLive does seem like a promising gaming alternative, but it is unlikely that it will completely replace current systems. There are too many tenuous factors at this stage, especially since the service hasn’t launched. Instead of fearing the new system or fretting about the chance of it making your console obsolete, look at it as a complement that could help bring gaming options to new areas.

Read [Kotaku] Also Read [CNET] Also Read [Gamertell] Site [OnLive]