Wedbush: OnLive tech "will ultimately be widely adopted"

Wedbush Morgan said in a report today that "OnLive could change the landscape" of gaming, and that its preview of the service at GDC left onlookers "blown away".

"It is not clear to us that OnLive will dominate any time soon, but we are confident that this breakthrough technology will ultimately be widely adopted," said the firm, adding that OnLive's ultra-low-latency set-up is likely to appeal to those demanding videoconferencing as a sideline.

Verizon or another broadband provider could buy the company for its videoconferencing capability, Wedbush said, and could offer games as an add-on to the videoconferencing service.

"The possibilities are endless, but the technology is quite appealing, and we are confident that OnLive will end up as part of the video game culture some time next decade."

The service is expected to launch in 2009.