OnLive, the cloud based gaming service that allows users to play resource intensive games on low-end machines, has announced it will no longer charge a monthly fee.

OnLive CEO Steve Perlman said that the aim of the new two-tiered business model was to create a simpler more accessible service.

"The key thing for us is keeping it free simplifies our pricing structure so it is entirely based on games rather than on access," said Perlman.

"It gives us much more flexibility and it is easier to understand than a two-tiered structure. And, now we know the business model works,"


Before the new two-tiered model was introduced users were required to pay $4.95 per month, with payments for games on top. However, the beta revealed that the service could be sustained without the need for a monthly fee.

"We actually got the first indication that the business could be supported without a monthly fee when we let beta testers start purchasing games before we launched the service,"

"So, to hedge our bet, we established our Founding Member promotion to defer the monthly fee for a year for everyone. Well, after getting to scale, we found that what we had suspected was true: that the business model works without a monthly fee. This allows us to continue without a monthly fee on an ongoing basis." added Perlman.

According to industry analyst Michael Pachter the next generation of home consoles could fail because of OnLive.

http://www.computerandvideogames.com/ar ... ?id=268109

I like the second hand market too much thanks

So it's not because hardly anyone was willing to first buy the game then pay a monthly fee, rather than just buying the game, then?

The monthly fee put me off online games. Like Ernie I prefer the second hand market for old games.