Eurogamer has been testing the OnLive cloud gaming service, you can check out their report over here. The service still has many shortcomings, but the site concludes the potential is quite startling.
Almost 18 months ago now we came up with several good reasons why OnLive couldn't possibly work, at least in relation to the specs and claims being made by the company itself. Now we've been hands-on with the final product, the company needs to be congratulated on just how close it has got to sorting out the latency issues which were one of the key concerns. Out of controlled conditions, OnLive has managed to get within spitting distance of console response times and that's a clear technological achievement worthy of recognition..