Everything You Need to Know about OnLive -- Is this Your Next Gaming Console?
Mass Spectating is Indeed Awesome

Another really neat feature about OnLive is the concept of mass spectating. When OnLive's UI boots up, you're greeted by a massive grid of game videos, showcasing thousands of games being actually played at that moment by other players using OnLive. Since OnLive works by capturing and processing video output, every frame of gameplay video that's rendered on OnLive can be stored and manipulated in cool ways -- in real-time. You can scan along this wall of footage, highlight any frame, and zoom in to immediately spectate that gamer's actions.
This feature, coupled with OnLive's expandive community capabilities (friends lists, profiles, video sharing, matchmaking, etc) makes the prospect of mass spectating very feasible for online tournaments or ESPN-like video feeds. A million people could be watching a Counter-Strike finals match with no server slowdown or additional modding required.
Expect OnLive to Expand Beyond Gaming
Nothing has officially been announced, but given the potential of OnLive's video compression and distribution services, you can bet on them expanding beyond gaming distribution. Movie rentals and television broadcasts are the obvious next steps, especially since one of OnLive's big financial backers is Warner Bros. However, we would also predict that teleconferencing, remote computing, and other "cloudy" services are also in the cards.
Plus, since OnLive's telemetry tracks every input and visual output of its players, there are huge opportunities for software publishers to use the service as a means to beta-test and tailor game experience to gamers needs, making design decisions based on thousands of hours of gameplay footage.

So when can you get yours hands on OnLive? The company is currently running an internal friends & family beta, and will expand to an external beta this summer. The service is expected to fully launch this Winter. Most of the leading game publishers have signed on as partners, and game releases on the service will be nearly simultaneous with their console and PC counterparts.

We'll be getting more hands-on time with OnLive at this year's GDC, and will more details as new information surfaces.