I recently started using onlive and I love it. Why isn't EA on board? I see myself only buying games through onlive for a long time. If EA doesn't have any games there then I will just play similar games from other developers.
Onlive recently signed a deal with Vizio to have Onlive software built into almost all of the Vizio televisions that have internet access or wifi receivers built in.
This means that Sam's Club and Wal-Mart will be selling a heck of a lot of Onlive Enabled tv's in the future. Netflix, Hulu, Onlive, etc, all that stuff is built into the tv. I don't know if the controller will be sold separately or be bundled with the tvs.
I don't think market penetration will be a huge problem for onlive, as the main overhead that they have is running servers and bandwidth costs, that sort of thing.
The problem with Onlive is that it requires a decently fast internet connection. I'm running 300kps dsl, and Onlive won't run at my house. Thus, I do not see Onlive becoming a "major player" in the games industry anytime soon.
Really, I see ERTS, Activision, or Valve trying to buy Onlive at some point. Valve, in particular, could extend remake Onlive into an extension of STEAM, which would be immensely popular...having your STEAM games available for streaming over tv.
On average though, I don't think Onlive is a serious challenge to pc or console gaming. Connection speeds are still too slow in much of the country to make Onlive as commonly used as console or pc gaming. I live in a city with a population of about 100,000 people, and like I said, my 300kps connection, which is plenty fast enough to game over xbox, pc, or ps3 as well as watch netflix with no problem ....it just won't handle the streaming video over online, and I don't feel like paying the extra $20-$30 a month that would give me a connection that fast.
It's not a lie. I love onlive because I don't have to worry about upgrading or updating my computer for a game or spending time at the store or waiting for a download. I just pick a game and I'm playing it a few seconds later. They have plenty of games that I want to play. Yeah I'd like to see EA games on it but It's not essential.