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Microsoft is Working on its Own Game Streaming, Netflix-Like Service (theverge.com)
Phil Spencer, Microsoft's gaming chief, revealed the company is building a streaming game service for any device. Our cloud engineers are building a game streaming network to unlock console gaming on any device, he said, adding this service will offer "console quality gaming on any device." From a report: "Gaming is now at its most vibrant," he said. "In this significant moment we are constantly challenging ourselves about where we can take gaming next." He said that Microsoft is recommitting and harnessing the full breath of the company to deliver on the future of play. That includes experts in Microsoft research working on developing the future of gaming AI and the company's cloud engineers building a game streaming network. He added that the company is also in the midst of developing the architecture for the next Xbox consoles. Further reading: Microsoft Acquires Four Gaming Studios, Including Ninja Theory, As It Looks To Bolster First-Party Catalog.
This is how I always explain streaming games to people who can't immediately see the horrible problems with it:
Imagine if the old Ubisoft always-on DRM were an inherent, unremoveable aspect of the game system rather than just something tacked on to a few individual games after the fact, such that Ubisoft couldn't even begrudgingly neuter it in a patch. Well, a streamed game is even worse than that would be.
The game doesn't even run locally. All you get is streaming video/audio and all the lag you'd expect (including controller lag), which is a recipe for disaster in North America. And any interruption in the connection that lasts more than a few tenths of a second is going to be behave like the equivalent of a "freeze" or "hang" that you'd NEVER tolerate in a properly local-hosted game. Not even the most twitchy DRM existing today has that problem.
Some people consider IPS monitors unsuitable for games requiring fast reflexes (i.e. FPSes) due to their double-digit response times. Internet latency is often worse and certainly more unpredictable than LCD monitor response time, and with streamed games it applies to audio and keyboard/controller/etc input too.
Then there are the bandwidth requirements.
Let's say you're lucky enough to have a 30mb/s connection. Why would you want to use it to transfer your game's video instead of, uh, a DVI cable, which is capable of 4 Gb/s? The people who developed DVI apparently understood that that 1920 x 1200 pixels w/ 24 bits/pixels @ 60Hz results in bandwidth well over 3 Gb/s. The people who developed streamed games seem very, very confused (at best).
Those of us who know anything about bandwidth and compression and (especially) latency can see the enormous technical obstacles facing a service like this, and Onlive never did anything to explain how they intended to solve them. Instead, they did everything they could to lock out independent reviewers with NDAs and closed demonstrations. A friend of mine described it as the gaming equivalent of the perpetual motion scam, and IMO that's spot on (except that streamed games would still have the draconian DRM issues even if it worked perfectly).
Streamed games appear designed from the ground up to benefit the game publishers and fuck the customers, exactly what you'd expect from any DRM system.
P.S. Remember when Microsoft intended 24-hour XBox One check-ins, and gamers rejected that? How the fuck are mandatory check ins going to fly when measured in milliseconds?