OnLive is currently the most high profile game streaming company out there. However, TransGaming CEO Vikas Gupta doesn’t believe in their technology or business model.
“We’ve looked at OnLive’s [business] model and we don’t believe it’s sustainable,” said Gupta. “We don’t believe they can make money on it. We know what they’re making from a distribution fee perspective, because that’s their model . . . So EA says here’s a game, and that game retails for $50. We know that they’re only making x percent, and within that margin there’s no way they can make money, given their operating expenditure, as well as the initial capital expenditure in order to get that data center up and running.”
He believes his company’s offering, Game Tree TV, will provide a much better experience because it was built from the ground up for smart TVs. “Think of us as the Netflix of videogames-on-demand,” he says. “We’ve got a sophisticated infrastructure located in the cloud… but the one big difference is that we download the content directly to the device, and that allows us to run the content optimally, and not have to worry about bandwidth issues and so on, which, in certain territories, can be a big problem.”
Source: GamesIndustry.biz
