OnLive announces beta test for server gaming over Wi-Fi connections

OnLive, the Palo Alto, Calif.-based games-on-demand service, is announcing today that it has begun a beta test to let gamers play over wireless networking connections.

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As a technical achievement, that’s pretty cool. OnLive runs its games in the cloud, using beefy servers with graphics processing capability and compression technology that can send the game data back to the user in real time. The result is that the server-based game service feels like a user is playing a game that is stored and processed on the user’s own computer. The cloud-based service offers benefits such as the ability to play demanding games on low-end hardware and the ability to log into the service from any machine.

But playing server-based games on Wi-Fi has been challenging in part because the wireless networks are often unreliable. You can’t, for instance, stream high-quality, high-definition video over Wi-Fi without seeing performance hiccups. Games can be even more demanding than video. But OnLive said it is preparing to do a service-wide rollout of Wi-Fi gaming, starting with a limited beta. Starting this month, members will be able to access any games on a PC or Mac via Wi-Fi.

Also, for the starting day of the Penny Arcade Expo 2010 game conference in Seattle (the bus is part of OnLive’s display), the company is offering a number of Labor Day promotions. The company is extending its AT&T Founding Members program through the end of the year. That allows users to sign up and get the first year of service for free, with an optional second year of $4.95 per month. On top of that, for the Labor Day weekend, OnLive is offering a 50 percent discount on all video games. Upcoming titles are listed here.

“Wi-Fi support has been the most requested feature among OnLive members, so we made it a top development priority and were able to roll out a beta version ahead of schedule,” said Mike McGarvey, OnLive’s COO. “We’re continuing to add new features and enhance the service, as well as expand the list of top new release games.”