Onlive Business Model Will Cripple Gamestop
Posted on 24. Apr, 2009 by unbornsoldier in Real Talk with the HipHopGamer
Onlive bursts onto the scene March 2009. It has been in development for 7 years, and was created by technology entrepenuer Steve Pearlman (Web TV, Quicktime) and his dedicated team of 5, made up of Mike McGarvey (Eidos, PLC), Tom Paquin (Netscape 1.0 and 2.0, Mozilla.org, Firefox, Thunderbird Mail), John Spinale (Eidos, Activision, Bitmo), and Paul V. Weinstein (Checkpoint Software, Zone Labs, Thinklink), bringing with them a vision of what could possibly be the future of digital gaming as we know it.
Onlive connects gamers all over the world with their favorite video games through their HDTV’s, PC’s, and Macs. By connecting gamers to game servers via their broadband at blinding fast speeds. The features will be immense and the promises are looking to be fulfilled, or so they say.
Gamestop’s Business model dates back to the 80’s, 1983 to be exact, when Gamestop was known as Babbages. Babbages was a small software retailer in Dallas, Texas which started out as a passion for gaming but quickly turned into “How do we make a quick profit and rob gamers of their hard earned cash with our crazy buy/sell used games policy.”
The time has come for Gamestop to face the music with over 6,000 stores worldwide, and over 33,000 employees, Gamestop’s selfish/greedy business model will soon come to an end. Onlive looks to be the future of digital distribution with EA, Ubisoft, Take Two, WB Games, Eidos, Nvidia, Atari, Code Masters, Epic Games, THQ, and 2D Boy already on board, Sony, Microsoft and Nintendo will follow suit. Here Lays Gamestop “We had a vision/passion for gaming somewhere along the way we lost our way.” 
R.I.P
psn:ubornsoldier
Written By:Jesus Melgoza
Edited By: HyDRo & Bakerboy
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It’s way too soon to thin OnLive will cripple GameStop. They haven’t even launched yet (they said it’ll be in Winter ‘09). It’s not about the idea, but the execution. So…
1) will pricing and deman be enough to pay for the costs of running the business while enticing games to use the service?
2) will they have enough money to by the time they launch and subsequently to run the business (remember, it’s a start-up business)
3) will latency and other major technical potential problems be worked out by the time of launch or soon enough after
No doubt, it’s a great idea and the management team seems like rockstars. And it could be another Blockbuster v. Netflix.
But it’s too soon to tell if this will actually work.
I wrote a blog on how video games are recession proof. Check it out…
http://phrenzie.com/2008/04/28/video-games-netflix-amazon%E2%80%A6recession-proof/
I don’t see how anyone really thinks this is going to change the game industry with this concept. The whole concept relys on you have a fast broadband to use. The odd thing is shouldn’t Gamestop had already met its demise by the hands of Amazon, Ebay, and countless other outlets that sale games? I really don’t see Gamestop going down due to Onlive and even if the possibility was there, it would need to get a very sizable PS2 like install base to do so. Onlive has to prove itself and all we saw was a controlled demostration in January. I would suggest holding major comments or down with Gamestop articles until the beta this fall and then judge what will the future hold.
The big three will never join OnLive! OnLive is a whole brand new console and thats just like Sony saying, “Oh, we’re going to join forces with our greatest enemy Microsoft.” It will never happen, but nice try…
Nice article. But i still dont think there competion for the big three : Nintendo,Sony , or Microsoft.This is got for consumers though.
thanks pakoe homie,no doubt dog ill try lol writing my second article now,thanks for the support dog
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