It is not all a bed of roses of course for services like OnLive - there a definitely a lot of potential problems that we need to consider. First and foremost, PC gamers are used to controlling their own destiny but with services like OnLive, the "overlord" will control it all. If your game doesn't work because of some random DRM issue you are without any kind of ability to fix it yourself - be prepared to get on the phone with the guys at OnLive. For a group of people that usually curse at any kind of DRM that affects their ability to use the game they way they want, OnLive could either be a great option (like Steam only better) or a bad one (like what was initially on Bioshock).
Another drawback is that your game is going to look like everyone else's game now - there are basically no ways to improve the image quality or resolution beyond what OnLive offers. While we had access to the same video / graphics options menus on OnLive that you would find on the local games, changes often crashed the session or were reverted. Obviously OnLive wants to be able to control how much GPU power the game you are running utilizes and what resolution (and thus how much bandwidth) you are using. I wouldn't be surprised to find a 1080p option available for a slightly higher monthly subscription rate than the "basic" 720p option at launch.
Speaking of everything looking the same, services like OnLive will likely put a hold on innovative PC gaming technologies like Eyefinity mulit-monitor gaming and NVIDIA's 3D Vision.
Of course, don't forget this: if your Internet is down or you are somewhere without access, you simply can't game.
And how will gamers on OnLive participate in mulitplayer gaming? Will they be able to interface with standard local PC gamers or be limited to other OnLive gamers?
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