That is quite likely i suppose, but i have a theory: Whenever you go to play/rent/buy a game from their service, it will first "pre-load" a small package for the game. This package will contain the minimal code necessary to run UI stuff, so that the UI can be responsive. That's how i'd do it anyways.
I guess we'll all see later this year
It's possible, but that would be sort of cheating -- that's not what they say they do on the tin. And hey, that would require some sort of 3D graphics card. And there's no standard way to separate "interface" from "game rendering" in most games. Even in an RTS game, the units themselves are both part of the interface (things you click and hover over, etc), as well as being actually part of the main game logic and rendering. So there's no real clean dividing line, and something like preloading just the UI would take some
hardcore modification of every game they integrated, too.
I think that the secret is supposedly in some awesome new video codec that is just super compressed, and then I guess they just rely on really good bandwidth in order to overcome the control lag thing. It will be interesting to see, for sure.
But I assume that they have built their business based on having figured out something technical that the rest of us have yet to figure out.
Venture capital?
Well, yeah, that's why I'm still somewhat skeptical. **cough**Phantom**cough** Sometimes you can smell the stinkers right from the start, but so far OnLive has not raised that red flag for me yet. I could easily be wrong, but they talk the talk at least. Enough for me not to write them off, but not enough for me to pay money without seeing it first-hand working (or hearing it from a reliable third party source under normal usage conditions), though. But yeah, that's always a possibility.