The OnLive cloud gaming service is now live. Reading the comments after Kotaku's announcement, I see that for the first year that you don't have to pay to use the service but you do have to pay for the games you use on it. There are complaints that if you drop the service, you lose the games you paid for, so actually this is a rental service where you pay the same price as if you bought physical copies of the game. Apparently one can't use a Wi Fi connection; you have to be wired to play with a speed of 5 Mbps. This is not available in England yet. One commentator thinks this should have been introduced in Asia where fast connections are the norm. Many of the games available are shooters.
http://kotaku.com/5566691/onlive-goes-live-did-you-sign-up
UPDATE: Eurogamer has posted prices for games available through the service.
http://www.eurogamer.net/articles/full-list-of-onlive-pricing-options
UPDATE #2: Sale on OnLive service.
http://www.1up.com/news/onlive-rolling-game-sale-wifi
UPDATE #3: Monthly fees are dropped (October 2010)
http://www.1up.com/news/onlive-drops-monthly-membership-fees
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