- 3 Sep 09, 08:14 GMT
At GDC, the company announced its aim to revolutionise the way games are distributed and played by streaming on-demand games over the internet from servers as much as 1,500 miles away.
The hope is to provide high quality gaming on low-end machines. The end result will only be affected by the user's internet bandwidth.
The company's secret sauce involves a video compression algorithm designed specifically for video games that can encode and compress video into data in about one millisecond.
When I spoke to inventor Steve Perlman at GDC earlier this year, he told me "video games are the last media sold as packaged goods and, yes, OnLive disrupts that retail model."
Lots of demos at GDC went according to the script in a controlled environment but now there is the chance for gamers to test things more in the wild and get involved in what Mr Perlman views as 'the brave new world.'
After months of "evolving the technology and installing lots of servers in our data centres," the company has just announced it is opening up its internal Beta to outside gamers.
OnLive says it's planning to set up a series of different test groups to put the system through its paces and use the data to improve the product.
"If OnLive is able to scale and meet the demand, it could pose a significant challenge to a game console industry that's weathered the storm of multiple hardware cycles, but might face an uphill battle against a truly great on demand service," said Barb Dybwad of Mashable.com.
While there are a thousand differing viewpoints about the future success or otherwise of OnLive, one notable voice out there is Trip Hawkins. As the founder of Electronic Arts, he is often dubbed the Godfather of the gaming industry.
In a piece in PCmag.com, he told the interviewer that he felt that cloud-based games will gain a great acceptance and that games delivered by, and played through, the cloud will eventually drive a lot of the innovation in both desktop and mobile games.
Mr Hawkins also said that the cloud might become the most disruptive, as well as the most efficient, way to play and deliver games.
One of the most important factors in the success of OnLive, and other types of services like this, will be what and how it charges customers whose wallets are no doubt feeling weary in these straightened times.
The BBC is not responsible for the content of external internet sites