OnLive to phase out video-game consoles?

The replacement, not just for a single video-game console, but this entire generation of consoles, may have emerged with the development of OnLive, a service that claims to have perfected the compression technique needed to stream games from a server at an impressive rate.

Here are the technical details, according to Endgaget: Broadband connections of 1.5Mbps (71% of US homes have 2Mbps or greater) will allow the image quality to dial down to Wii levels while 4-5Mbps are required for HD resolution.

Onlive expects to be able to release its streaming games within the same time frame as the retail launches. The streaming games will be available for both Mac and PC (Windows XP or Vista) without a high-end graphics card or a ton of memory. If you don't have access to a computer, OnLive also plans to release something called a MicroConsole with BlueTooth capability (for gameplay smack-talking, no doubt). Oh, and it'll sell for less than a $250 Wii console, though a price is yet to be set.

Think video-game developers won't be on board? Think again. On board so far: Electronic Arts, Ubisoft, Take-Two Interactive, Warner Bros. Interactive Entertainment, THQ, Epic Games, Eidos, Atari Interactive and Codemasters. OnLive should be available Winter 2009 with monthly subscriptions available on a tier basis.

Watch a very cool techno-laced video demonstrating the service at OnLive.com. The video reveals that Onlive will require no downloads or installations, you'll have access to any game anywhere, and you can watch, or join, thousands of live games from an unprecedented community of gamers. You can also demo games before purchase. Did that just blow your mind?. Want to get the story on how this product was developed over a seven-year period in secret? Watch the video below: