OnLive: "Beginning of the End" of Retail?

OnLive, the ambitious on-demand gaming service announced during GDC this week, may negatively impact console sales, and even cause declines at brick-and-mortar retailers such as GameStop, Wedbush Morgan analyst Michael Pachter said Wednesday.

"We don't expect an immediate impact [on console sales] (the service likely will be rolled out in early 2010), but think that if priced right, OnLive could favorably compete for 1-2 percent of the overall games market," he wrote in a research note analyzing GameStop.

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Myst3527d ago

I hope not and believe this won't end retail. I really like some of the people I encounter in various stores even in Gamestop. Overall some people (Like me) really like to have physical copies more so than a Digital Download or something of the sort.

Either way I think that this onLive would be best suited for MMOs if not anything else, that's the only thing at this moment that I can think of it being most useful. Then again I'm really hungry right now so I can't think...

Malacath3526d ago

This is basically just an interactive tv service. The games are actually run on their servers but the picture and sound is transmitted over the internet to the home user. So will be heavilly reliant on users having a consistanly fast internet connection.

As most people don't have internet connections that are consistantly fast I can see the service failing. There is also the fact that ISPs in some countries have fair usage policies and having a user constantly downloading at 5meg will violate the policy and the user will have their connection disconnected or throttled.

I just can't see it taking off especially in the UK.