[OnLive] is the next generation of game delivery that makes [Steam] and [Direct2Drive] obsolete. OnLive will also make a dent in the hardware market, by remotely hosting your games, effectively lowering your hardware requirements. OnLive has beefed up servers that play your games at full resolution and max detail while piping an image back to you. This type of technology is going to require the Internet infrastructure in the US to upgrade. If you have a slower Internet connection, this service won’t be for you. If you’ve got broadband, the game video will be piped in at standard tv resolution. If you have fast broadband, you’ll be playing in HDTV quality.
These beefed up servers are based on cloud computing which pushes the envelope for server hardware. [Slashdot] reports servers with 384 GB of RAM are becoming available.