Doing the impossible can certainly score you all manner of fame and publicity, but as online gaming service OnLive has recently proven, merely alluding to the fact that you intend to do the impossible can earn just as many ears. Last week, after hearing about the service only a few days prior, gamers looked on with a mix of horror and grim satisfaction as OnLive’s big talker received his first stern talking-to, courtesy of Eurogamer’s Richard Leadbetter.
Now, though, OnLive CEO Steve Perlman is firing back. Check out his retorts below.
Problem #1: Servers are too expensive.
“Regarding server costs, [Leadbetter] does not understand server economics. It doesn’t matter how many subscribers you have per server. It matters how much revenue you earn per server.… OnLive servers earn many dollars per user each month (many orders of magnitude more than a CPM-based business), and when one user is offline, another user is online, so even a server that is only serving one user at a time (e.g. for Crysis), is reused by many users each month.”
“And lastly, the cost of a server is much less than a home gamer PC: we don’t have the case, disk drive, optical drive, etc. And we don’t have to worry about retail markup, customer service, etc.”
Problem #2: OnLive’s encoder can’t possibly run at 1000fps.
“He’s confusing compression latency (1ms) with frame time. The frame time is NOT 1ms (which would imply 1000 fps). It’s 16.7ms (which implies 60fps). Just as linear video compression time is much HIGHER latency than one frame time (e.g. 500ms latency does NOT imply a 2fps frame rate), interactive video compression is much LOWER latency that one frame time.”
Perlman also concluded by noting that many “top-tier game publishers” spent years behind the curtain with OnLive, verifying that their technology is more than just smoke and mirrors. Otherwise, one can infer, they wouldn’t have thrown their support behind OnLive in the first place.
Seems pretty air-tight to us. OnLive launches this fall. We’ll be there on day one, slurping down every last bit of pudding, searching tirelessly for the proof.