Link to the news: http://news.bbc.co.uk/1/hi/technology/8556874.stm
It's from March 2010, but it's not that old of a news.
Since I don't own a 360, PS3 nor a Wii I'm probably going to rent (or own?) this gaming modem because it seems to be cheap and online gaming is low (10 GBP in UK).
The only downside on all this is that, if you/I loose internet connection there's no gaming on it, because it's all based on servers.
BT in UK has the rights of OnLive, but I'm not sure BT is capable of handling it, Virgin or an other company would be more reliable.
Sounds good for gamers of all budgets, I won't be getting that myself though no point really and I rather keep buying me hardware of the past but that's just me.
It could be revolutionary if it actually works.
There are signs that it'll work (ie, big-name publishers are getting behind it), but until it gets out in the open and is widely tested by consumers, there's no telling how well it'll work. The slightest bit of lag between controller input and action on the screen is enough to make most games unplayable.
The idea's great and all, but what sane ISP will provide that kind of service?
Either way, some mathmetician will find out whichever is more cost-effective once it's publically released: A monthly bill to pay your games (and I'm sure that there will be a monthly bill), or a decent PC and a one-time cost to play your games.
Yeah they said it's going to be 14.99 a month for the service.