The evolution of gaming has begun.  OnLive cloud gaming service is alive. We knew the day would come!   OnLive works the same way as cloud storage does for accessing files. Games are hosted on a server and players access content through these servers. Let’s say you wanted to play the game: Batman Arkham Asylum. Instead of going to a store to buy the disc, or download it, OnLive will allow you to simply click on a link and have the game loaded instantly. Batman: Arkham Asylum will then pop up on your screen and you’re on your way.

Game saves will be hosted through these servers as well, so when you’re done playing a game you can pick up right where you left off. All with a simple click.

Stever Perlman, OnLive Founder & CEO, has voiced the potential of the service, along with the potential problems,

“Despite the enormous potential of OnLive technology, it is important to emphasize that the OnLive Game Service is a very different way to experience videogames. We are using the Internet and computers in ways that have never been tried before and, like any brand new technology, you can expect a few bumps on take off until we reach cruising altitude and achieve a smooth flight. OnLive has been tested in an enormous variety of locations using a vast number of combinations of computers, ISPs, displays and input devices. Even so, there are endless possible combinations. So while most OnLive testers report good results with their gameplay experience, we still run into situations where the user may have to take some action (e.g. reset a cable modem or use a different mouse), or unique situations that we have not yet accounted for and require further changes to OnLive technology. “

They’ve announced the monthly free will be $4.95 a month to simply access OnLive (with the Founding Member Discount, anyway). What they haven’t provided is how much the PlayPasses for the various games will cost. If they set the price points too high, then you’re charging people a monthly fee along with another charge which might be too great for players to handle.