Tag Archives: Marketing

So in Sam Kwok’s most recent post, he talks about how video games are sold through CD’s (or DVDs or Blu-ray might I add), but in recent years, how some companies like Electronic Arts offer video games through digital downloading.  What are the advantages of digital downloading you might ask?  Well, as Sam points out, people would be able to get their games fast because of the download speeds available in today’s technological world, but more importantly, it’s also convenient, and targets those who are too lazy to get off their couch to get the latest game.  As Sam claimed, “It shows the power of how important it is to get your product to the consumer as convenient as possible.”

Now a majority of other companies already are using this concept (Netflix allows you to stream movies, Xbox Live allows you to download video games to your console, and others…), but recently, I came across a company that takes this concept to a whole new level.  It’s called OnLive.  Traditionally, the majority of video games are played on a gaming console, be it an Xbox 360, a PS3, a Wii, or a PC, by inserting a disc and running the game from that disc.  Well, what OnLive offers is similar to Netflix, but this time, it streams a whole video game!

They have had this available to the PC for a while, but this December 2nd, they are releasing their own “console” if you can call it that.  Basically it includes a controller and a small box that you can plug into your TV and start playing graphics intensive video games in full 1080p!  You then get connected to their service and OnLive runs the game on their servers.  How much does this “console” cost?  $99.  Compared to the other consoles like the Xbox 360 and PS3 retailing at $200- $300, it seems like a good deal huh?

Personally, I wouldn’t purchase it.  There are a lot of disadvantages.  First off, yes, you do spend considerably less for OnLive in comparison to other consoles, but you don’t actually have a physical copy of the game you paid for.  And I’m not even sure if the game would have an “expiry date” like other e-books for example.  Another thing, since the service requires an internet connection, if you didn’t have one, you wouldn’t be able to play anything.  If OnLive’s servers also crash, then those consumers using their service would have plenty of complaints.  One final irk that I have is that since it is streaming the video game to you, expect lag, a gamer’s worst nightmare.

Seeing all the pros and cons of this service, OnLive is an online service and thus their target market is limited to those that have internet, but they do offer a convenient way to play video games on demand to those that DO have internet – all from the comfort of the couch in their living rooms. OnLive also has a great opportunity to expand in this untapped market of streaming video games, being the first to exclusively do so.  As for me, I don’t think I will be getting one in the near future, as I do like to have a copy of my games and play them at my own leisure, internet connection or not.

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Check out Sam Kwok’s blog!
Want to try OnLive yourself?  Click on the image above!