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

onlive3

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.

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Patrick Garratt

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Patrick Garratt is a games media legend - and not just by reputation. He was named as such in the UK's 'Games Media Awards', the equivalent of a lifetime achievement award. After garnering experience on countless gaming magazines, he joined Eurogamer and later split from that brand to create VG247, putting the site on the map with fast, 24-hour a day coverage, and assembling the site's earliest editorial teams. He retired from VG247, and the games industry, in 2017.

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