New ‘OnLive’ Tech Could Render Consoles Obsolete

Palo Alto startup OnLive…plans to launch a groundbreaking gaming service this winter. OnLive will supply players with a small set-top box, not much bigger than a Nintendo DS, which will plug into your TV and your home broadband connection, [and] start playing games just like those on the Xbox 360, PS3 or PC — but with no install time, no waiting for downloads, and no need for big, noisy, expensive consoles cluttering up your living room. OnLive’s service can be continually upgraded, too, so you’ll never be stuck with obsolete hardware again.

OnLive has already signed deals with an impressive range of partners — including EA, Take-Two, and Ubisoft — and promises to have an up-to-the-minute selection of games when the service launches. [Games currently in the line-up: Burnout Paradise, Crysis: Warhead, Grand Theft Auto IV, LEGO Batman, and Mirror’s Edge.]

There’s a catch, though. Being an online, streaming service, OnLive is only going to be as good as your Internet connection.