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Cloud-based gaming service has more beta users than it expected to have in users for first year

Gamers today that want to play on their PC or with a game console on a TV have to purchase the game titles they play, often at prices of up to $60 or more per title. In the future, gamers may just logon and play the games they want from cloud-based servers rather than needing a local console or a physical game.

OnLive officially debuted its cloud-based gaming service and demonstrated the service at GDC 2009. The company was very quiet with the development of its product and has announced that it has completed a round of new funding.

OnLive won’t specify how much funds it raised, however, the level of funding for the company included investors from AT&T Media Holdings Inc. and Lauder Partners. Original investors in OnLive included Warner Brothers, Autodesk, and Maverick Capital. The original investors also participated in the new round of financing.

OnLive CEO Steve Perlman would only say that the new round of investments represents a "large investment at a large valuation."

The OnLive service plans to officially launch this winter and is undergoing beta testing right now. OnLive reports that it is having to rethink its original estimates for adoption over the first year the service is available. The company reports that hundreds of thousands of people signed up for the beta test period of the service. That number was more than the company estimated would adopt the service in the first year it was available.

Perlman said, "Our projections have changed. Our projections originally for the first year were less than the number of people that have so far signed up for beta. So I guess we underestimated."

How much OnLive users will pay for the monthly service needed to play games is still unknown. So far, the service has signed up publishers like EA, Ubisoft, and Take-Two Interactive to provide game titles.

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RE: Beta
By ThePooBurner on 9/30/2009 5:47:33 PM , Rating: 4
That's exactly what i was thinking. We have a new tech that everyone is saying may be the future of gaming and change the way everything is being done. You can bet that everyone is going to want to see if they want to bother with it and if lag will be as big of a problem as we all think it will be. Not only that, but a lot of us buy highend GPUs so we can have QUALITY graphics, not just fast. The idea of getting 60fps of compressed graphics isn't very appealing, so trying it out and seeing how the IQ is would be huge. I really wouldn't adjust the numbers if i were them. This is just people using the beta as a way to demo the tech and see if it's worth the bother.

The only thing that might make it worth paying to use is if there was a games catalog that you got access to. Cause if you had to buy the right to play any particular game PLUS a subscription fee you can forget it. No one is going to want to pony up for that. Especially if they already own a game and just don't want to upgrade their system to get better FPS.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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