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Right partially because OnLive couldn't spend the money required to put servers close enough to give users a good experience. It would have taken a monumental amount of money for them to expand in a way that would facilitate that, and custom make servers that had consumer grade GPUs in them.

Furthermore, there are other technological advances that have come even in the past 2 years that help facilitate this, like Secure Reliable Transport protocol (https://www.srtalliance.org/).

Things were just too stacked against OnLive at the time to make it work, but most of those barriers have since been removed after they had gone under.

OnLive didnt work (good enough) even if you lived next door to their servers.

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