I beta-tested OnLive a long time ago, and by the third day it was back in the box, ready to be shipped back. It took a long time to pre-buffer a game. The game prices were too high. The resolution wasn't that great, and it didn't have most of the games I actually wanted to play. A company with an existing revenue stream could get into this market and support the initial losses with their other products. Valve/Steam could do this. Valve already has an existing profitable business model (digital distribution of games on PC/Mac). They're branching out into distribution of apps. They already offer Steam on TV. But I just don't see the draw yet. A decent, $500 PC can run most games on acceptable settings. A gaming console is only $300 and there are tons of games available.

I can see something like a hardware add-on that does game streaming, but both Sony and Microsoft (XBLA) offer game and video downloads. So I'm not quite sure where a dedicated game-streaming device will fit in (and be profitable). If I wanted to spend $50 on a game, I'd get it for PC or a console and have a much better experience.

I don't think the market for something like this will happen until most of the US has affordable, reliable, and reasonably fast (10 mbit+) internet. And when it does happen, I think it's going to be a side-market by an already-profitable company.

Spoken like someone who's never had to deal with them in any capacity. SORBS was an arrogant list that was out of touch with reality and the problems administrators face. SORBS made far too many arbitrary decisions (like blocking netblocks because they LOOKED dynamic - without bothering to check) and caused real harm and damage to millions of people. They were an embarrassment compared to real lists like Zen/SpamHaus, SpamCop, etc who remained professional and logical and actually had policies and procedures to determine how they handled situations. SORBS felt and acted like a college-run side project. It was by no means professional. They even asked for (mandatory) donations to de-list. What the hell! They were a joke and any real admin stopped using them many years ago in favor of real solutions (DCC/Razor, real anti-spam lists, etc). Anyone who continued to use them was just doing themselves, their customers, and everyone else a disservice.