Ed
03-26-2009, 06:36 PM
Article From: http://uk.reuters.com/article/internetNews/idUKTRE52P48820090326
OnLive's distribution system seen as threat to Game Group
Thu Mar 26, 2009 2:29pm GMT
(Reuters) - A new video game distribution system by U.S.-based startup OnLive represents a "material threat" to Game Group Plc's retail model, said KBC's Peel Hunt, which rated the British company "sell."
OnLive, which expects to launch its service in the winter of 2009, will deliver games run on servers in the "cloud" with no lag time, rather than locally on a PC or a console.
"In other words, users will be able to play the latest PS3 or Xbox games without needing to own the console itself or buy physical game software in a direct distribution model to rent or purchase the games," analyst John Stevenson said.
Whether OnLive's initial foray is successful or not, the threat of online distribution has become much more tangible, he said. "The genie is now out of the bottle."
(Reporting by Purwa Naveen Raman in Bangalore; Editing by Himani Sarkar)
OnLive's distribution system seen as threat to Game Group
Thu Mar 26, 2009 2:29pm GMT
(Reuters) - A new video game distribution system by U.S.-based startup OnLive represents a "material threat" to Game Group Plc's retail model, said KBC's Peel Hunt, which rated the British company "sell."
OnLive, which expects to launch its service in the winter of 2009, will deliver games run on servers in the "cloud" with no lag time, rather than locally on a PC or a console.
"In other words, users will be able to play the latest PS3 or Xbox games without needing to own the console itself or buy physical game software in a direct distribution model to rent or purchase the games," analyst John Stevenson said.
Whether OnLive's initial foray is successful or not, the threat of online distribution has become much more tangible, he said. "The genie is now out of the bottle."
(Reporting by Purwa Naveen Raman in Bangalore; Editing by Himani Sarkar)