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I could care less about the hardware itself, as I am a pc enthusiast and always use top of the line hardware, but what this could do for the state of pc gaming might be revolutionary.
Many games never make it to the pc simply because our userbase is small compared to that of the consoles, and PC titles generally sell less copies than those for consoles.
Ignore the posts by the console fanboys beneath the article and focus on the fact that this machine will play PC games, not proprietary games built for their hardware. This means that any joe nobody with a decent net connection speed will have the ability to play games as tough on hardware as Crysis at the highest settings without even owning a PC. This also means that every joe nobody with outdated crap hardware on their pc will be able to do the same without even buying OnLives hardware, but just by subscribing to their service. How many people subscribe to XBox live?
I really hope this works, and that they gain a large consumer base. Why? Simply because that would mean that more and more titles would be developed for the PC, and the best gaming platform on the planet wouldn't be treated like a second class citizen any longer.
Flop or not?. If they want to come out swinging they're gonna need to do some really heavy advertising to reach console-only types. They also haven't revealed their subscription model, and this sounds like an incredibly pricey endeavor, so I can't imagine that it will be cheap. Of course, if this works according to their goals, you would never be forced to purchase new hardware again ever.
And while I can't see myself buying their hardware, buying a cheap notebook and using their free software platform to game from the hotels I stay in all summer sounds like a great idea.