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Retail Distribution Eyed

More TVs and Devices to Integrate OnLive Game Service, CEO Says

LAS VEGAS -- The cloud-based, on-demand OnLive Game Service “will be inside other TVs” and other devices later this year, in addition to the Vizio TVs, Via tablet, Via smartphone and Blu-ray players that were announced last week at CES, OnLive CEO Steve Perlman told us. It was too soon, however, to name other manufacturer partners or provide product timetables, he said. “Every manufacturer moves [at] a different pace,” but we're just “seeing the tip of a very big iceberg” now, he said.

Perlman predicted that OnLive eventually will be available from as many enabled devices as Netflix is today. It’s unlikely, however, that OnLive will be able to get its service integrated into the PS3, Wii and Xbox 360 consoles as Netflix is. But Perlman expressed hope that despite being a rival to the console makers, it may be able to get its service integrated into Sony TVs. “The market for videogames is so large … there’s plenty of room for” OnLive, he said, but called OnLive a “disruptive technology.” OnLive is trying to be “as friendly” to the overall game “ecosystem as we possibly can,” he said.

OnLive will also “have retailers getting” its game system, including the MicroConsole TV adapter, Perlman said. OnLive held meetings to that end at CES, and the exact timing of availability wasn’t yet announced, he told us. The game system is now only distributed by OnLive direct to consumers. The Vizio TVs will provide an entrance for OnLive into Amazon, Costco and Walmart, he said.

As part of the deal with Vizio, the OnLive service is being integrated directly into the manufacturer’s products this year, the companies said. “The partnership will incorporate the OnLive cloud gaming experience across the next generation of Vizio Internet Apps consumer electronics devices that share a unified, sophisticated and intuitive user interface for seamless access to high-end, interactive content,” they said. New-release core and casual games will be available from OnLive via the Vizio TVs for instant play “at up to full 1080p HDTV in 3D with 5.1 surround sound,” the companies said. Vizio TVs that are 3D-capable will be able to play stereoscopic 3D games via OnLive, Perlman said, predicting videogame will help drive 3D growth in the home entertainment arena. OnLive game compatibility “will also be extended to the Vizio Via tablet and Via smartphone, complementing current OnLive availability on PC, Mac and iPad,” the companies said. Demonstrations of the OnLive cloud game service on Via TVs were given at CES.

OnLive and SRS Labs also said at CES that they teamed “to deliver top-tier videogames in rich 5.1 surround sound to any compatible consumer electronic device through the use of SRS 5.1 Surround Sound.” OnLive users will get SRS 5.1 Surround “as an automatic free update in early 2011,” the companies said. Chip maker Marvell also said last week that OnLive was using its Armada 1000 HD Media System on a Chip (SoC) with Qdeo video processing in the OnLive Gaming Console.

The OnLive service launched in June. “Millions” of game sessions and games have been played so far, and the subscriber base “more than doubled in the last six weeks,” Perlman said. Its game library now includes more than 50 instant-play premium titles, including free trials, with PlayPass game purchases and rentals ranging from $2.99 to $49.99 and a recently announced $9.99 a month all-you-can-play plan called PlayPack. On tap is the addition of Bluetooth capabilities for the service, Perlman said. That will happen by month’s end after its current beta testing, he said.

OnLive remains “a relatively small company,” with about 200 employees, Perlman said. Etienne Handman, Pandora’s ex-chief operating officer, joined OnLive as COO last week.