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OnLive Patents Cloud-Based PC Gaming

by - source: Big Download

This could could be a sign of bad times to come for hardware manufacturers and retailers.

Tuesday OnLive chief executive Steve Perlman said in an interview that the company was finally granted a patent last week covering the invention of cloud-based video games-- U.S. Patent No. 7,849,491.

Listed as the inventor, Perlman originally filed for the patent back in December 2002 just after he began working on what eventually became the current OnLive streaming service launched earlier this year. It covers a "breakthrough" technology that streams "high-twitch action" videogames from remote servers in data centers using a compression unit, and a transceiver to transmit compressed game video to players with broadband-connected HDTVs, PCs, Macs or mobile devices.

Although the new patent could be a big turning point for gamers, hardware manufacturers and retailers could see it as a major threat. Theoretically consumers would no longer need to purchase games in brick-and-mortar stores and online e-tailers like Steam and Gamer's Gate, as titles can be rented and purchased through the OnLive service.

The patent could also possibly eliminate the need for purchasing a new console or upgrading PC components to run the latest title. Instead, OnLive users would only need minimal hardware to play games that would normally require high-end hardware to run. Eventually OnLive will extend its streaming games to mobile applications like the iPad and Android-based devices.

"This is an industry-changing patent," Perlman told the Wall Street Journal. He added that the U.S. Patent and Trademark Office didn't start examining his patent application until five years after it was first submitted because the agency is dealing with a massive backlog of patent applications.

So what does the new patent mean for rivals Gaikai and Otoy? OnLive may be in a position to sue the two networks for patent infringement. According to VentureBeat, Perlman declined to comment on the company's intentions, but seemed willing to work out an agreement. OnLive investors-- including Warner Bros, Autodesk, AT&T and more-- may choose differently.

Earlier this month OnLive launched a $99 dedicated "console" that receives the cloud-based gaming service for digital and analog TVs. As of this writing, an iPad "viewer" is available to download and install, allowing owners to spectate OnLive gaming sessions-- the android version is currently in beta.

OnLive is expected to launch a movie streaming service next year using the same cloud-based network it uses to deliver high-quality, high-performance games.

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hellwig 12/15/2010 11:56 PM
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Huh, too bad this guy had to wait an extra 5 years because so many other companies are filing B.S. patents over thinks like "One Click Purchasing", "Using the Internet to Download Files", "Using a Phone to Take Pictures", "Using 3,4,5,6 7 Fingers for multi-touch tracking", etc etc...

I'm hoping this guy got a patent on the technology he uses to handle running PC games on server architectures, mass rendering, and streaming of that content in real time, and not simply the concept of "Allowing people to play games online", which would be B.S. itself. As for suing other companies offering the same service, that's a bad idea. Not only are they not worth anything, you want to grow the market, not shrink it. Merge with those companies rather than eliminate. You need their customer base.

It's like Serius/XM. There weren't enough subscribers for 2 satellite radio companies, so merge into one. There aren't enough customers for streaming video games, so merge into one.

joytech22 12/16/2010 12:17 PM
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This is stupid, their service isn't even available in other countries like New Zealand or Australia, so that patent could prevent other companies from starting in other countries..

znegval 12/16/2010 12:18 PM
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If the concept of streaming games in real time already made me think if it was worth it, now I'm pretty sure it's not. They've been granted a legal monopoly that's gonna last pretty much forever. Guaranteed to having pricier subscriptions and less quality of service than it would have if a competitor showed up at some point.

Von Death 12/16/2010 12:38 PM
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Well at least they blocked the guy who tried to patent fire...

Anonymous 12/16/2010 12:40 PM
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Tried it, Lagged considerably, even on a 30mb connection with 6 up. heh, Far from worth even demoing. I'll stick with hardcopies and Steam >_

megahustler 12/16/2010 12:45 PM
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It will be interesting to see how this works out. OnLive doesn't require a high-end PC, which many gamers in the US have, while it does require a good Internet connection, which many people in the US don't have - and can't easily get.

I think the traditional game supply chain can sleep easy for the time being.

Vladislaus 12/16/2010 1:16 AM
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joytech22 :
This is stupid, their service isn't even available in other countries like New Zealand or Australia, so that patent could prevent other companies from starting in other countries..


This patent is only valid in the USA.

chickenhoagie 12/16/2010 1:41 AM
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Why in the hell would they allow a single company to patent cloud based PC gaming..Jeeze. Some people are so money hungry its not even funny. And besides that, how can anyone in the US utilize cloud based PC gaming with the average ISP downstream speed for consumers being 1Mbps and upload 500Kbps? Thats completely useless. And even as someone said above, it lagged terribly with a 30Mbps download and 5Mbps upload, which is way higher than the average connection for consumers across the US. Maybe force ISP's to bump us up to all fiber connections, or at least 1Gbps speeds, then people will actually be able to utilize this service. Even then, all the hiccups involved in online activity that occur, people will constantly complain how their gaming experience is being completely shot. It'd be like everyone in the US experiencing blue screen of deaths 20 times a day while playing their games. that'd be terrible.

mister g 12/16/2010 1:43 AM
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megahustler :
It will be interesting to see how this works out. OnLive doesn't require a high-end PC, which many gamers in the US have, while it does require a good Internet connection, which many people in the US don't have - and can't easily get.I think the traditional game supply chain can sleep easy for the time being.


Good point, and if the average internet speed gets any faster how much do you think the game sellers have to pay to cough cough stifle the competition. (Look at Comcast and BitTorrent)

stingstang 12/16/2010 2:05 AM
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@All: If cloud computing is going to lag, then it won't work. According to our insider, current high-end connections will lag, so stop b!tching about how they're going to take all the business. I'll still be using my computer if it lags less.

kronos_cornelius 12/16/2010 2:13 AM
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The idea of OnLive has plenty of skeptics. I am in the fence, since the conditions against its success may disappear over the next decade ( bandwidth, latency).

But now OnLive has to also be carefull on how it handles that patent. If the gaming ecosystem they are about to create is too proprietary, very few developers will risk making software for it because they may fear OnLive will eat their lunch in the future (think Microsft with office applications in the 90's). On the other hand, if they make an open standard, and license the patent to the competition (like Intel to AMD), they may be able to grow a new computer sector.

With only passing knowledge of the patent, I think the patent has a ground to stand on. I've though about the approach myself (from the Grid Computing perspective) about 3 years ago, but certainly did not have the confidence to pursue it. Pursuing something instead of just think about it, in the end, should and is worth money.

coldtortilla 12/16/2010 2:14 AM
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Let's see how long it takes this company to die!!!! gaming pc's FTW!!!!

gsacks 12/16/2010 2:18 AM
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There are a lot of patent trolls out there, but this definitely is a valid patent. OnLive absolutely did something different, and turned the online gaming model on its head. I personally haven't used the service, but that is only because I don't game that much anymore. And no, it does not create a monopoly. There are plenty of other ways to play games both offline and online. But this is a model that allows you to do it with minimal hardware investment, and that is deserving of patent protection. Without the patent, Onlive could be muscled out by MS or Sony, or any number of other tech giants. And, unlike copyrights, patents do actually run out.

eklipz330 12/16/2010 3:59 AM
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10 years too early

their recent new payment plan tells me they are suffering... but if they penetrate the tablet market, its freakin over, they're gonna rule the competition

FloKid 12/16/2010 4:06 AM
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Once they support 1080p and 3D i'll start paying for it.

Leftbranch 12/16/2010 4:30 AM
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Even if OnLive doesn't make it, someone will buy up their IP rights in the 3 to 5 years that it might take for this technology to be viable, and then we have a whole new Rambus company suing everyone for minor infractions. I think the gaming community just lost a big fight on this one.

eddieroolz 12/16/2010 6:04 AM
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God, invented cloud gaming? What next? If I put together a PMP, Phone and a Toaster would I have invented a smartphone that toasts buns?

rantoc 12/16/2010 9:17 AM
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They will perish i guess, the internet isn't just up to it yet. There will be a day when steamed games will be the norm but that day isn't today!

alidan 12/16/2010 9:32 AM
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hellwig :
Huh, too bad this guy had to wait an extra 5 years because so many other companies are filing B.S. patents over thinks like "One Click Purchasing", "Using the Internet to Download Files", "Using a Phone to Take Pictures", "Using 3,4,5,6 7 Fingers for multi-touch tracking", etc etc...I'm hoping this guy got a patent on the technology he uses to handle running PC games on server architectures, mass rendering, and streaming of that content in real time, and not simply the concept of "Allowing people to play games online", which would be B.S. itself. As for suing other companies offering the same service, that's a bad idea. Not only are they not worth anything, you want to grow the market, not shrink it. Merge with those companies rather than eliminate. You need their customer base.It's like Serius/XM. There weren't enough subscribers for 2 satellite radio companies, so merge into one. There aren't enough customers for streaming video games, so merge into one.



this guy deserves a patent, but here let me chime in on this one
"Using 3,4,5,6 7 Fingers for multi-touch tracking"
if there is a company that developed a way to use more than 2 fingers, and they want a patent on that tech, than they also deserve it, because if they make the tech, and it works should they allow others to have what they made for free? no, they should licences it out, and only make it free if they really want to. there is a reason multi touch only has 2 fingers, and it was hard to even get those 2 to play nice.

Travis Beane 12/16/2010 11:02 AM
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The sound of my system fans and HDDs whirling away puts me to sleep at night. It's a noise I've listened to daily for years now. What will I do without it? :)

alidan 12/16/2010 11:09 AM
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i hate the sound of computers. i sleep with a big fan to drown out all the other noise around me, because if i heard even a small noise from my computer than isnt normal, i would be come to nervous to sleep. iv had enough crap fail on me to know what noises are bad, and the birds around where i live, and the house in general make noises like the click of death, and other various bad noises.

Anonymous 12/16/2010 2:03 PM
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demonhorde665 12/16/2010 2:46 PM
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i'm suprised the patent office gave such a patent out to such a broad idea seriously things have goten rediculous with patents these days. i think i'm going to patient the idea of a--holes taking out borad patents , then i can sue these guys and rambus

demonhorde665 12/16/2010 2:52 PM
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gsacks :
There are a lot of patent trolls out there, but this definitely is a valid patent. OnLive absolutely did something different, and turned the online gaming model on its head. I personally haven't used the service, but that is only because I don't game that much anymore. And no, it does not create a monopoly. There are plenty of other ways to play games both offline and online. But this is a model that allows you to do it with minimal hardware investment, and that is deserving of patent protection. Without the patent, Onlive could be muscled out by MS or Sony, or any number of other tech giants. And, unlike copyrights, patents do actually run out.




actually copy rights run out too pretty much LOL , copyrights after 50 years go to public domain. not sure on patent life time though. of note copy rights in music are particularly abused , because many labels "buy" a copy right after it's 50 years are up essintially extending the copy right a great example is old jazz music you see constantly getting released on cd , often that label bought teh copy right after those oldies copy right expired.

tommysch 12/16/2010 3:22 PM
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pakone :
do you really think that companies like microsoft or nintendo will just let onlive take the big "hardware" bussiness from them just like that?



OnLive is MS. But it will still suck because it is just another SaaS BS.

dark_lord69 12/16/2010 4:25 PM
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WOW!
So much for Microsoft, Sony and Nintendo jumping on that bandwagon. At this point I'm sure they can do it but they would likely need to pay a license fee (at least).

dark_lord69 12/16/2010 4:31 PM
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TommySch :
OnLive is MS. But it will still suck because it is just another SaaS BS.



WRONG! Microsoft has nothing to do with OnLive. Infact they are not even a content or technology partner to OnLive.

jgiron 12/16/2010 6:35 PM
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Quote :It will be interesting to see how this works out. OnLive doesn't require a high-end PC, which many gamers in the US have, while it does require a good Internet connection, which many people in the US don't have - and can't easily get.

I think the traditional game supply chain can sleep easy for the time being.



I believe you got it backwards, as wanna be hard core gamer and family man
I can not afford to purchase the new hard ware to run the uber games. However,
I do have a very good internet connection.

hellwig 12/16/2010 8:27 PM
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alidan :
this guy deserves a patent, but here let me chime in on this one"Using 3,4,5,6 7 Fingers for multi-touch tracking"if there is a company that developed a way to use more than 2 fingers, and they want a patent on that tech, than they also deserve it, because if they make the tech, and it works should they allow others to have what they made for free? no, they should licences it out, and only make it free if they really want to. there is a reason multi touch only has 2 fingers, and it was hard to even get those 2 to play nice.


I agree, getting more than one finger to play nice was a change in the technology (went from resistive to capacitive touch panels, etc...). However to get more than 2 fingers to track simply involves tossing more computing power at the task, you don't need any new technology.

It's like people invented the computer, the internet, the modem, the web browser, etc... Some moron comes along and files a patent that basically reads "using a web browser on a computer connected to the internet with a modem to download data files". Believe it or not, they were granted that patent, I forget the name, but they started suing everyone offering movie, music, and video downloads (basically, any download that wasn't a webpage).

I feel patents should cover only technology (i.e. the servers and technology running OnLive), and not processes or concepts (i.e. Online Gaming in general, 4 finger tracking vs. 3 finger tracking). Unfortunately, patent trolls live off patenting ideas, and not actual working technology. I hate people who only come up with ideas and don't do any of the heavy lifting themselves.

Them: "Let's eat."
Me: "Where?"
Them: "I came up with the idea to eat, you figure out what, where, when, and how."
Me: "F-you!"

cjoeh2000 12/16/2010 8:49 PM
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TommySch :
OnLive is MS. But it will still suck because it is just another SaaS BS.



Just to clarify, copyrights are effective for the life of the author plus 70 years. Patents last 14 to 20 years depending on type.

Of course none of this applies in Bird Law, which just isn't governed by reason.

Sabiancym 12/16/2010 11:05 PM
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Onlive has been shown to lag and look like crap compared to local gaming. Either fix it, or keep things they way they are.


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