Onlive is a new service enabeling a high-octane gaming experiance on your low-end notebook, laptop or even TV. Unlike Quake Live you need a micro console and a handcontrol to play with it. So in that sense it is actually a clear competitor to the existing gaming consols currently available.
So, by scrutinizing Onlive's business model according to tbmdb.com's business model components you clearly see that Onlive innovates upon several components. But essentially, the end-user have the same or an enhanced value experience for less money and in a more flexible manner. However, Onlive needs diffrent skills to manage external relations, create the propert control mechanisms and expecially create the capability and assets needed to have virtually zero downtime on the service since that have a huge impact on the value reciver - the customer - .
One thing is for sure, this is a clear and awaited model for how to treat piracy issues without deminishing the value experiance by the customer. That clearly talks in favour for the adoption of this model of delivering consol gaming. But whether it is Nintendo, Microsoft or Playstation who will do it in the long run, or if perhaps Onlive can claim a sustainable market position, is still to see.
Have a look at the promotion video and see what you think. I'm quite sure that I will never go back from having only a laptop. Further it is always nice to enable gaming without installation on a system managed by a grumpy ICT staff.
However, its getting increasingly clearer that in the future we will see a consolidation of IP-TV, gaming in the cloud and other similar services. They will probably utilize the same hardware and will be provided by the one service provider.
Via Wikonomics, for more great frameworks for understanding business models: tbmdb.com