When it comes to prices, this is one way to alleviate that. Part of the reason games are expensive is because just putting the games on a shelf in a store eats up a lot of that cost. With OnLive (and downloadable games in general), the game makers would not have to worry about that. Since there is less overhead due to the elimination of retail space, they could feasibly make the cost to the consumer smaller. So if the games that come out for OnLive are the same as the other game systems, they could very likely be cheaper.

Will it work? Maybe in time. The whole idea revolves around use of very high speed internet, something not everyone has. We're more likely to have a fully high speed, online world in the future where something like this would be much more feasible, but as it stands right now I'm not sure if the world (or just America) is ready for it. I'm definitely interested in seeing how it turns out, though.