The OnLive System

[CannabisCorpse]

Will probably fail due to the huge amount of bandwith demand of streaming, with games like crysis at max res with full AA and AF (same goes with other recent/demanding games)

Until internet providers keep download limits, the OnLive system won't really sell

[Sepharius]

The games themselves are run off hyper-advanced servers which have a completely new algorithm invented to compress the data so much that it barely causes any lag. (Note: These were the same people that invented the first Quicktime).

The OnLive people have talked with the various ISPs, and the ISPs have set aside large amounts of bandwidth specifically for OnLive when it releases, or so I've heard.