It's a neat idea, but there's no way I see this thing really catching on in the near future. In ten years maybe, but there are too many issues with the idea right now.

For starters, the connection speed required to play games in standard definition, let alone 720p makes it out of reach for a lot of people. I have the fastest internet connection you can get in my area and it's still only about half the speed required to play SD games. The broadband infrastructure just isn't there in a lot of places in North America.

The other problem I see is with online gaming. Even with a fast connection and relatively low in game latency I've seen lag affect my play in online games before, and it can be annoying when it happens. Now I'm not only going to have the lag from my computer/console communicating with the game server through relatively efficient network code, but we're going to add in an extra layer to the latency problem because I'll be getting latency from streaming HD video and sound before I do anything. It just puts you another step behind the server and anyone who runs their own hardware. And a fairly sizable step behind as well since I don't think they can make their net code efficient enough or compress that stuff enough to have you reacting as fast in online games as someone running their own machine. So not only am I now dealing with lag in my single player gaming, but I'll probably find multiplayer to be almost unplayable.

I can see people going for this if they have a really fast internet connection and don't want to spend the money on a next gen console or gaming PC, and don't play online, but I don't think this is a service designed for the rest of us who want a smooth and seamless single player experience and/or playable online.

Like Dreddz, I'm interested in seeing where this goes, but I don't see it really hitting it's stride for a long time if it even lasts that long.