GDC: OnLive model will impact console and retail sales and “appeal immensely to publishers,” says Pachter

Wednesday, 25th March 2009 14:30 GMT By Patrick Garratt


Wedbush Morgan’s Michael Pachter just issued a note saying he believes OnLive will impact both console sales and games retail, and will be a hugely attractive proposition to publishers.

The full thing:

  • Tuesday night at the Game Developers Conference, Rearden Labs introduced OnLive, a new cloud computing service that will allow consumers to play console quality games without a PC or a console.
  • No business model was announced, and in our view, the success or failure of the service will ride on whether it is priced low enough to induce a large number of consumers to “subscribe”, in turn driving a greater number of games available from the publishers.
  • In our view, the OnLive model will appeal immensely to publishers, who will likely derive greater revenue per sale than is derived through conventional retail distribution.
  • We think that the adoption of a service like OnLive will impact console sales.
  • Similarly, we think that the adoption of a service like OnLive will impact retail

OnLive, the upcoming Cloud gaming service, was announced at GDC earlier this week.



  1. Syrok

    Captain Obvious is in the house.

    #1 6 years ago
  2. Tonka

    That “No shit Sherlock” tag…

    #2 6 years ago
  3. No_PUDding

    It all sounds really crazy.

    It is as if there’s been money thrown about for some ‘viral’ marketing, specifically some public/press publisher support, and then the hype train has ensued.

    I don’t see this working at all.

    #3 6 years ago
  4. redlander

    Errrm am I not getting this?

    But “play console quality games without a PC or a console. ”

    What will it run on a fracking toaster?

    #4 6 years ago
  5. Whizzo

    The Emperor’s New Clothes keeps on giving.

    #5 6 years ago
  6. Patrick Garratt

    Some of the things I’ve heard said about this today are hilarious.

    #6 6 years ago
  7. No_PUDding

    Glad it’s not just me.

    This really is a case of the Emperors new console, being completely invisible and all.

    #7 6 years ago
  8. Redh3lix

    The tech is to early for the current broadband infrastructure (here in the UK), although I think this WILL be the future of gaming. Developers/publishers have so much to gain from such a service.

    #8 6 years ago
  9. Shatner


    #9 6 years ago
  10. Harry

    Given that it won’t support gaming in 1080p or PC resolutions of for example 1680×1050 I really don’t think it’s this great game-changing product.

    #10 6 years ago
  11. Shatner



    #11 6 years ago
  12. Madeira

    Not appealing in the least.

    #12 6 years ago
  13. loki

    Who belief in this bullshit ?

    #13 6 years ago
  14. DaMan

    I don’t believe any of this.


    #14 6 years ago
  15. DaMan

    I’d rather believe Zeebo will own everyone :)

    #15 6 years ago
  16. Rhythm

    @Harry – That’ll remain the pastime of the hardcore, as will owning actual consoles.

    This is to gaming what TV is to visual media: For every person wanting to see a film at the cinema you get 20 wanting to watch it on DVD and 1500 wanting to wait until it “comes out on telly”. At the moment gaming is expensive and fiddly, regardless of what console you use. Get the pipelines sorted out and this removes a *lot* of barriers.

    #16 6 years ago
  17. sennasnit

    I suppose it really depends on how much the initial outlay is, and how much it costs for the subscription/per play. if it was say £50/$75 per year unlimited play i could see some benefits, however if it is the usual rob the poor bastards blind strategy, it is more likely to be like £5 per day, plus that controller looks shit…

    #17 6 years ago
  18. mortiferus

    DLC is the future! I personally hate, yes hate these streaming services. I want to own my games whether it’s digital or physical. FUCK streaming!!!

    #18 6 years ago
  19. crippledhooba

    I agree this sounds kinda lame…I want a actual copy on my computer or a physical copy, its the same with music and movies.

    #19 6 years ago
  20. theevilaires

    For once i agree with you mortiferus. I just don’t get this streaming stuff that people like so much.

    #20 6 years ago
  21. Gekidami

    I dont even like the idea of owning games digitally, in the end you dont really have any right over the stuff despite having bought it, its like you just rented it, so streaming can fuck right off.

    #21 6 years ago
  22. theevilaires

    I do like the idea of having easy access to certain games on my console like warhawk, wipeout HD, Socom, and Siren. But I also own the disc of those games too. You can get Siren on a disc from play-asia with full english support. The PS3 is region free for games so they work perfectly.

    #22 6 years ago

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