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Virtuos GDC 2011

Virtuos GDC 2011

Virtuos is one of the world's largest providers of digital production services to the game and movie industries, specializing in 3D art and game co-development. Virtuos has over 600 staff across its production centers in Shanghai and Chengdu, and offices in Paris, Vancouver and Tokyo.

Serving 15 of the top 20 games publishers worldwide, as well as renowned developers, Virtuos has developed full games on PS3, Xbox 360, Wii, NDS and PSP for leading publishers.

Visit us today at virtuosgames.com

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News

  GDC: OnLive Gets Launch Date, Reveals Initial Publishers
by Leigh Alexander [PC, Console/PC, GDC]
17 comments
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March 10, 2010
 
GDC: OnLive Gets Launch Date, Reveals Initial Publishers
In a keynote at GDC, cloud-based game streaming service OnLive has announced an official U.S. launch date of June 17, 2010 for its PC and Mac service. The service is now accepting signups for a "priority waiting list" of gamers who will be among the first to subscribe.

OnLive also revealed what it will charge: a monthly subscription fee currently set at $14.95. The first 25,000 users to join the wait list will have the fee waived for their first three months.

The subscription fee won't include the price of the games themselves, which users will be need to purchase or rent separately. Today OnLive revealed that it'll release games from publishers Electronic Arts, Ubisoft, 2K Games, THQ and Warner Bros. Interactive Entertainment.

As the launch of OnLive will coincide with this year's E3 event, the company says it will announce "loyalty programs" and special offers like multi-month pricing at that time.

The service, which will initially be available in the 48 contiguous United States, allows gamers to play PC or Mac titles through their own computers or television sets (with a special adapter), without needing to render the game on their own hardware. Rather, it is rendered remotely and sent frame-by-frame back to the local display device.

Eventually, the company hopes to provide even faster service by streaming directly through cable to users' homes, much like paid television currently is.

"This marks a huge milestone for both OnLive and the interactive entertainment landscape as a whole, changing the way that video games are developed, marketed, accessed and played," says OnLive founder and CEO Steve Perlman. "We are opening the door to incredible experiences for gamers and enormous opportunities for developers and publishers."

[UPDATE: Lazard Capital analyst Colin Sebastian believes the arrival of the service won't pressure traditional models right away. "Near-term pressure on the traditional retail channel seems limited. Without discounts on games, we note that pricing may be a gating factor to mass market adoption of OnLive," he says.

"However, if successful, we believe OnLive could have a meaningful impact on the industry, offering publishers a lower-cost distribution channel and consumers convenient access to high-quality games," the analyst continues. "While there are still legitimate questions regarding the cost/scale for OnLive, over the long haul the service has a multi-billion [dollar] market opportunity."]
 
   
 
Comments

Steve Mallory
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Let me make sure I am following this:

+ I need to purchase the hardware
+ I need to pay a monthly fee to be able to purchase games
+ I need a fairly beefy internet connection to run at HD levels
+ I also need to pony up a substantial fee per title
+ I assume that all titles purchased via this fee service are only usable through this service, so I'm actually renting the games with a substantial, one-time fee.

And they expect to be successful?

PT Barnum would be proud.

Eric Carr
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You make a good point Steve. I had somehow assumed that the service itself would be gratis like the Steam or StarDock platforms.

I mean, I don't have an issue paying for the games themselves, but a monthly fee it too much.

My enthusiasm is far less now.

Steve Mallory
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My first question, honestly was:

"Couldn't I plug in my laptop to my HD TV, use Steam, and play a game like TF2 without the monthly fee, without the input lag, and without the data pipe required for optimal performance for a whole lot less?"

Further, add up those monthly fees, and you practically have enough for a Xbox 360. Let's say that their hardware is fifty bucks - that is cheap, but required for playback - that means that between monthly fees and hardware fees, you definitely have enough to buy a 360 and a XBL Gold account for a year, which has digital distribution of HD content and does not require a massive data pipe for playback, and still, in the long run, would be cheaper and require a less aggressive bandwidth platform to operate effectively.

What is the benefit, at that point, to the User of OnLive? The cost-benefit analysis, as I see it, is ridiculously in favor of OnLive. The costs are all on the consumer and with, compared to the power and portability of either a semi-powerful laptop or a pure home console, only a small cost savings in terms of setup. As you pointed out, Eric, get a decent laptop, loadup Steam and get a decent wireless keyboard and mouse, and you can already do what OnLive is promising cheaper and without a monthly fee.

It all depends on cost of content, at this point. If OnLive and the Publishers believe that folks will pay $39.99 or more for a AAA, first run title, plus monthly fees - they're going to be in for a world of hurt.

John Mawhorter
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Yeah this pricing scheme is completely stupid. I think they should've gone with a free service and just skimmed their take out of the cost of buying the game. They should also be offering game rentals...

John Petersen
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Yep, the pricing is all wrong. Gaikai the better way of doing it.

Roberto Alfonso
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Steve, the horse armour fiasco didn't prevent the DLC concept from being a success. Since there are no similar services, they can only guess what the best pricing scheme can be.

John Gordon
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They should just charge $14.95 a month and let people have unlimited play after that. If customers aren't getting more value from streaming compared to an original console, then I don't see any reason why they should switch to a new format like Onlive.

Roberto Alfonso
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John, I am guessing most of the subscription fee goes to them, while most of the game prices will go to the publishers/developers. There is nothing stopping them doing offers in the future if this works, I am sure right now all the companies involved want to cover themselves, thus the subscription plus individual price.

Michiel Hendriks
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They should use a safari bookshelf like construction. I.e. you pay X per month for access, and then get like 10 "slots" each slots can be filled with a game (some take 2 slots), and you have to have a slot occupied for 1 month, after that you can remove it ad put something else in that slot. And of course there should be an option to buy extra slots.

Benjamin Marchand
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OMG, how can they screw such an excellent concept with this bad pricing strategy ??

Mark Harris
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Yeah I'm not sure how that will work out. Granted, let's say it would cost $1000 to buy a PC capable of playing modern games at high to full specs... that's 5.5 years of Onlive service, during which time you would be upgrading that computer with $50 here and $100 there, which is even more Onlive time. I'm still in the "I want my hard copy that I own and hold in my hands" camp, but I'm sure there are people who would be just fine with buying virtually.

I believe that's how they'll market it.

Tim Johnston
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So I have to pay $15 a month AND buy or rent the game? Whoever came up with this pricing model is woefully out of touch it would seem.

Mark Harris
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You pay $1000 for a computer and then buy the games to play on it, same model spread out over time instead of all at once. In fact, if you finance your $1000 computer and pay $20 per month plus interest then also buy games to play on it then it is EXACTLY the same pricing model... just delivered differently.

I'm going to apply for a marketing job with Onlive. :-p

Roberto Alfonso
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Tim, people pay cable and PPV events. So, there is a market for this.

Steve Mallory
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@Roberto

The comparison with Cable TV is different in that the service the cable company is providing, providing the content, is part of the monthly fee. In order to match up, Cable TV would have to not only charge for connectivity into their content, but then charge you for every television show you watch.

The PPV is closer, and does represent a small but lucrative niche, but it is still a niche which specific content developers target and create content for.

Also, the horse armor DLC was a fiasco, and as a result, pricing models changed across the board with future offerings not just from Bethesda, but across all developers and publishers. As a result, consumers have gotten far more savvy when it comes to assessing value with their DLC purchases.

OnLive has one benefit - to digitally delivery content without the expense of hardware and software ownership. If their pricing structure obviates that benefit, then they are not providing anything unique and, in fact, are more expensive, in the long term. They are counting on the fact that consumers will not "do the math" when comparing the costs and benefits of their service compared to the initial expenses for hardware purchases.

Like I said:

Subscription Fee Yearly Total + Onlive Hardware Fee > Initial Console Expense = OnLive Failure.

Jonathan Arsenault
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I have never heard of a more stupid idea, gonna cost them a fortune in hardware and bandwidth for a service no one really want, i see bankrupt lurking down their road. But people by the millions are already retarded enough to pay for Xbox live, so they might be stupid enough to actually subscribe to such a service... Do not want.

The technology for doing this is handily available to anyone for free, it's called NX. They do not bring anything new at all, beside bad marketing scheme, ho yeah nothing new either, move along folks nothing to see here but failure.

@Roberto Alfonso
The guy right above you pointed to a service doing the exact same thing, maybe you should learn to read..

Tobias Rau
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before you talking such rant you may inform yourself about the featureset of OnLive. You keep on comparing it with consoles but that is plain stupid!
watch this: http://g4tv.com/videos/44282/DICE-2010-Instant-Gratification-Presentation/

Does your PC or Console has features as:
+watch your frinds play (without the need to own the game or even having expensive powerful hardware)
+play crysis on an IPhone
+playing any game instantaneuos without installing it(or even downloading a modern 10GB+ clients)
+never downloading or installing any patch
???? certainly not!
OnLive will not be the perfect platform for every game but for a lot.
From my perspective as a producer of MMOs the platform becomes interesting because it offers the chance to close the gap between the serversystem and the client some day or at least removes some of the problems casued by the current server-client systems.

So please do all of us a favor and stop the stupid rant about something you havenīt tested. And if the pricing should be wrong they will change it for sure before they go bankrupt. Pricing is a lot easier to change than technologie!


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