Eisler said that, while Nvidia supported OnLive, "think a lot of their problems were of their own doing." He conceded that "naysayers certainly had a field day with the demise of OnLive", but that would not change the way Nvidia thinks about cloud gaming as a future opportunity for the company. He said that Nvidia still sees "a lot of potential for the vision of cloud gaming", but they would not have done "some things the way that OnLive did".
As for the time frame when consumer cloud computing could get its next shot, Eisler said that he believes there will be "a lot" happening "next year". According to the executive, Nvidia is sampling products to its partners addressing this market segment, but he noted that much of the traction is not in the U.S., but is led by Asia. "We’ll see [consumer cloud gaming] gain momentum throughout next year," he said. "But if I look out five years, I think it could be a significant portion of the way people play games."
Even though Gaikai and OnLive have both dramatically changed since their inception, Eisler said that Nvidia will continue supporting the cloud gaming companies.
I'll stick with my home desktop and hardware.
Translation = The U.S. internet infrastructure is sub-par to the rest of the civilized world.
Maybe if the "next gen" cloud gaming goes a 100% rental system. You pay only when you play. Or maybe get deep discounts when you buy a month block of play time. The moddle will only work if a customer can walk away from the product and any time. Also at no point spent the kind of money that would make one feel that you bought something. Hence you feel like you are owed something.
It is actually cheaper to render on location than render at a server and stream the data to the consumer. As time goes on, and hardware becomes cheaper and more power efficient, this reality will grow even bolder. Internet providers charge for increased bandwidth usage, because streaming gigabytes of data isn't free. It costs money and power.
The only meaningful application that I can see for cloud gaming is services is things like demos on the fly etc. Streaming endless gigabytes to your PC will never be more efficient than buying a graphics card. And graphics cards will keep going down in price a lot faster than internet infrastructure.
cloud gaming could be applied for mobile device, but for home gaming entertainment,, locally is the better experience (bigger, crispier, faster, hassle free).
If they can figure out how to get rid of the lag I experienced when playing multi-player basketball over onLive and allow higher graphics settings (don't see why the can't) over the connection, they'll have something very viable.
The only way I can see a hardware company thinking this is a good thing is if the hardware company itself is looking to provide the services in the future using their hardware to render the imagery passed over the network making this type of gaming possible.