Just announced at this year's GDC, OnLive is an on-demand gaming service. It's essentially the gaming version of cloud computing - everything is computed, rendered and housed online. In its simplest description, your controller inputs are uploaded, a high-end server takes your inputs and plays the game, and then a video stream of the output is sent back to your computer. Think of it as something like Youtube or Hulu for games.
The service works with pretty much any Windows or Mac machine as a small browser plug-in. Optionally, you will also be able to purchase a small device, called the OnLive MicroConsole, that you can hook directly into your TV via HDMI, though if your computer supports video output to your TV, you can just do it that way instead. Of course, you can also just play on your computer's display if you don't want to pipe it out to your living room set.
More@IGN
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