OnLive lets you play high-end games while traveling overseas

It would be nice to play high-end 3D games while traveling abroad. But not many of us can take a screaming game PC with us wherever we go.

OnLive has an answer for this market niche. The games-on-demand service announced today that U.S.-based OnLive users will be able to play their games and try free demos while traveling overseas.

Palo Alto, Calif.-based OnLive offers server-based gaming, which means it runs the games on its servers and then sends the graphics over a broadband connection to the user, who can then display the graphics on any computer. You can thus play a high-end game such as Assassin’s Creed 2 on a low-end desktop or laptop. Using that same technology, OnLive will now let users who are traveling abroad play server-based games via broadband connections.

It may be a niche market, but it’s a cool one. It lets OnLive distinguish itself from other online game services, and it can be a lifeline for traveling hardcore gamers looking for a computer game fix. But in the long term, the new capability shows that OnLive will be able to support gaming around the world for its games-on-demand service.

You can play with a PC or a Mac. OnLive is in the process of opening up data centers in various parts of the world to support its on-demand games. Earlier this month, OnLive eliminated its monthly subscription fees; now, you can buy or rent games on onlive on an a la carte basis. OnLive has the potential to disrupt video game retailers by cutting them out of the distribution picture through direct broadband connections with users. That’s why the company raised a lot of money and has a $1.1 billion valuation.

BT and Belgacom are looking to launch OnLive services in Europe. Other investors include AT&T, Warner Bros., Autodesk, Lauder Partners and Maverick Capital. The company has raised a lot of money, but hasn’t disclosed the exact amount. It has more than 100 employees.