I'm sure onlive wants to bring their tech to everything possible, but I don't see Microsoft or Sony adding this service to their consoles unless one of them buy's onlive. And while using 500GB/month of bandwidth to play WOW, because your too cheap to buy a descent computer still lets you play, the ISP's are laughing their way to the bank with their capped data plans and overage charges.
"Whats the point of a console if onlive is gonna do the processing on its servers?"
Adding the service to a console adds more choices for the consumer. It's a bullet point on a sales sheet. Remove your own personal preferences and see all of the possibilities. If its profitable and adds to the sales figures, they'll do it. It doesn't even have to work properly for the majority of console owners. It doesn't have to work for the people living out in the sticks for them to make money. Making money is the only major consideration.
can work for PSP thing, which should be integrated with the console anyway. yeah it can work, the same way apple products work together. when you buy a game you pay a little bit extra for the onlive version and thats it.
I can see Sony and MS developing their service to copy and rival this while keeping its primary way as playing games from disk till its ready or for another gen or 2. Why not have the trinity of gaming? Steam style downloads, Disks from physical stores, and Onlive (eventually their own service) for cloud gaming. By doing so they let Onlive trail blaze and eventually overtake in a DVD vs bluray competition or just fully adopt Onlive and Playstation and xbox become service providers/media centers bundling software and "apps"
As a onlive beta recipient, I can attest that the system was barely functional, the streaming games suffered from horrendous lag via broadband, and the interface was not nearly as funcitonal as PSN or XBL. In short, my experience with it was terrible and I cant fathom why anyone, particularly Sony or MS would give them the opportunity to taint their products.