Dave Perry is dreaming big with his Gaikai streaming service. He went into a little more detail on just how it will at work at today's LA Games Conference. The company is still planning to kick off its service with 300 data centers, and while he admits it will have "much more traffic than the servers can handle," Gaikai will limit early users to those closest to the centers. If you're close enough to the server to have only about 5-10 milliseconds of lag, you'll get in. If not, Perry told Joystiq, then you won't even see the embedded window -- but your request will be logged anyway. That way, he said, Gaikai will be able to track not just where people are using the service, but where they want to use it. If a bunch of users in Alaska try to play, but can't connect because they're too far away, then "we know we're losing money in Alaska," he says, and Gaikai will set up more datacenters there.

Perry says Gaikai will help with security as well -- he suggested that companies might even be able to release their E3 demos to the world just during the week of the event, allowing press or the public to play them online for a limited time, with the code securely held on Gaikai's servers. It's all speculation at this point, though -- a service like that won't be ready to go by this year's E3 in June. But stay tuned anyway: Perry also promised us an announcement about Gaikai at E3. "We got some cool stuff to show off," he confirmed with a knowing nod.

This article was originally published on Joystiq.