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OnLive pricing could stunt growth, says analyst

Friday, 12th March 2010 20:42 GMT By Patrick Garratt

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Signal Hill’s Todd Greenwald has warned that a small install base and expensive pricing model could stifle Cloud gaming service OnLive’s growth.

“While we find the service compelling and exciting, we are somewhat sceptical that OnLive will really turn the gaming world upside down any time soon,” said Greenwald in a note, following confirmation at GDC this week that OnLive will launch in June in the US, price $15 a month.

“While OnLive enables users to forgo spending $300 on a console, the $15 per month fee adds up to $180 per year, or $360 over 2 years. Additionally, we believe the target audience for OnLive (hardcore gamers) really values the packaged good disc version of a game, which allows them to quickly re-sell a title in the used market and gain back $20-30 of the $60 purchase price.

“If publishers try to sell digital-only new release games at a $40-50 ASP (average selling price), we don’t think gamers will find the price points compelling,” he said.

OnLive’s date and price announcement for the US was one of GDC’s bigger stories this week, although hidden away in the excitement was the fact that 1080p60 performance, one of the main selling points of OnLive’s original GDC announcement last year, won’t be available until 2011.

Don’t panic though, Americans: Mark Rein likes it.

There’s no date for Europe as yet.

Thanks, GI.

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7 Comments

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  1. S0meRand0mN00b

    Go away on live :/

    #1 4 years ago
  2. theevilaires

    What growth?! the goddamn thing wont take off the ground, and if it does its going to explode before it hits the troposphere.

    Who here is using this service, go ahead raise your hand. I DARE YOU!

    #2 4 years ago
  3. Redh3lix

    “…we believe the target audience for OnLive (hardcore gamers)”

    If that’s the case, OnLive will have to work ABSOLUTELY perfectly without a SINGLE ounce of lag. The story below this says otherwise.

    #3 4 years ago
  4. killercow

    Onlive will be free in some parts (http://blog.onlive.com/2010/03/11/more-news-from-onlive/)

    You can rent and play demos for free at the expense of social features. I expect that when you buy a game with the subscription you and you stop paying it, you’ll still be able to play it on the onlive game portal.

    #4 4 years ago
  5. Joe_Gamer

    On live should turn their streaming technology into an app or service that I can run on my gaming rig and connect from any computer in my house, a lan connection is the only connection fast enough to avoid the latency problems. HTPC could then become the gaming rig for the house, wife wants to watch something, pause the game, and head into the man cave. Check it out Crysis on my netbook. Now that I would buy.

    #5 4 years ago
  6. frostquake

    No way in HELL will this American Pay $30-50 for a Game on Onlive and then pay $15.00 a month. I live in the deep woods, So I need something like this…but not in its current model….YUCKERS. Oh and most Americans secretly loathe Mark Rein…so you do yourself no favors

    #6 4 years ago
  7. Michael O’Connor

    I agree with Todd in this case. It’s a great idea, but the price system they’re offering? Retarded.

    A subscription *and* paying for the game on top of that? Nobody is going to want to do that.

    Sort out the retarded pricing system and they might have a chance.

    #7 4 years ago