If you're not familiar with the OnLive streaming game service, it's essentially cloud-based PC gaming. The original PC client allows nearly any laptop or desktop to play high-end PC games by offloading the CPU- and GPU-intensive tasks of actually running the game software to a remote render farm, then beaming the gameplay back to you as a streaming video.
As a $99 set-top box, OnLive's new MicroConsole offers an intriguing low-cost alternative to traditional living-room game consoles, which can cost two to three times as much. Ditching the computer altogether, the MicroConsole acts as a dongle and media streamer, connecting to your TV via HDMI (or component video) and to the Internet via an Ethernet cable (Wi-Fi is still wonky on the PC client, so we don't expect to see it on the MicroConsole anytime soon).
The PC-based version worked surprisingly well, so our expectations were high for this standalone TV-friendly box. And, taking the $99 price into account, which includes a free game of your choice on the OnLive service, a wireless controller, and an HDMI cable, those expectations were largely met, although the image quality and features still can't match a full-price living-room game console. One caveat: the system requires a 3-5Mbps connection to work, and can be unforgiving of spotty Internet access speeds.
Setup and games
If you have an existing account (which is free to sign up for) you can log directly into it, and access games that have already been purchased. One of the nice features of cloud-based gaming is that your existing saved games and library travel with you wherever you log in. Otherwise you'll be able to follow onscreen prompts to set up a new account, either by inputting info via the gamepad (cumbersome), or by connecting a USB keyboard (easier).
The MicroConsole onscreen interface is identical to that of the PC client, and includes a marketplace for buying games (you're actually buying a license to play the game on OnLive's servers), a list of your purchased games, and an arena view, which lets you drop in and watch other players' live game streams (this can be turned off in the privacy settings).
In the marketplace, most games are $20 to $40, and the catalog consists mostly of slightly out-of-date mainstream games (Splinter Cell: Conviction, Borderlands), a handful of newer games (Mafia II), and some indie/casual games (Puzzle Chronicles, World of Goo). Many of the games can also be rented for three to five days for just a few dollars, and many offer a free trial period, allowing for copious low or no-cost sampling.
OnLive has also just released a beta for its all-you-can-eat package, which is available on both the MicroConsole and PC software client. For $9.95, the PlayPack plan currently includes 14 games, but not many of the most recent or high-profile games available in the a la carte menu.