Check it out, this is probably the future of gaming:
"The concept is simple. Your controller input isn't going from your hand to the controller to the machine in front of you, it's going from your hand to the controller through the internet to OnLive's machines then back again as streamed video. Whether you're using a USB gamepad, Bluetooth wireless controller, or tried and true keyboard and mouse, the processing and output happens on OnLive's side, then is fed back to your terminal, with the game "perceptually" played locally.
In other words, it's cloud computed gaming.
Using patented video compression in tandem with algorithms that compensate for lag, jitter and packet loss, OnLive delivers video at up to 720p resolution at frame rates up to 60 frames per second. Of course, the quality of the video feed relies on your connection.
For standard definition television quality, a broadband connection of at least 1.5 megabits per second is required. For HDTV resolution, a connection of at least 5 mbps is needed.
What about lag, you say? OnLive's technology "incubator" Rearden Studios claims that its servers will deliver video feeds that have a ping of less than one millisecond. Its patented video compression technique is also advertised as blazing fast, with video compression taking about one millisecond to process."
Gdc09: OnLive Makes PC Upgrades Extinct, Lets You Play Crysis On Your TV
Clips: See OnLive In Action