OnLive was at the DICE Summit in Las Vegas last week, where they showed their game streaming software running on the iPhone again. This time they had Crysis going, and apparently the demo ran "fast and smooth." The way they do it is to run the game and render it all on a fast computer somewhere, and then stream video to the iPhone while streaming controls back to the game itself. Of course a demo is just a demo, and actually running a game like that out in the real world is much tougher.
But OnLive is convinced they can do it. And that's not all -- they also made mention of running their app on "tablets," which is a roundabout way of hinting that they'd like to do the same for the iPad. Now that is an intriguing opposition -- you wouldn't even need processing power for games on the iPad if you can run the software. If OnLive sets it up so you can stream on your local Wi-Fi connection (essentially using the iPad as a remote viewer/controller), then we might have something interesting here. Apple might be interested in that as well. Streaming heavyweight games from your Mac to the iPad? Yes, please.
But of course, all OnLive has so far is a nice demo and some good ideas. We're still waiting to hear details of how they're going to bring out their streaming service, not to mention get it up and running on the iPhone. As soon as they let us know, we'll let you know.