From the article: "The catch: The online game service has to move the data from the server hosting the game to the user, and back, quick enough that a gamer won't notice any lag between his input and what he sees on the screen.
Crack that problem, however, and a number of others go away. There's no need for gamers to invest in a pricey console. No need to upgrade, either. Games hosted on servers can't be pirated. And Perlman says he'll be able to offer game developers a fatter slice of the revenues than they can get by working with retail channels stuffed with middlemen."