Remember reading posts about OnLive in ESR a year back and the skepticism around it, I was skeptic myself. However it is for real and I tested it myself.

http://www.onlive.com/

I opted for the founding member's program, sign-up here
signup

You are basically playing the game as a stream, your inputs go to server and rendered frames come back to you. I did not feel any lag that hurts gameplay. I was playing batman: arkham asylum. The packet drops in network appear as similar glitches as seen in flash videos., does not hurt gameplay in any way. To be honest I did not expect this to work this well. But if it stays this way this can change the future of PC gaming.

pros
+ a low end computer can play the uber pc games
+ you need not buy the full game, rentals are are under 5$ for 3 days unlimited, under 7$ for 5 days unlimited.
+ no setup time at all you just jump into the game like a youtube video
+ decent resolution
1.5 mbps connection -> SD quality, normal tv, wii console output
5 mbps connection-> HD quality comparable to xbox / ps3 ouput
+ I did not feel any considerable lag in 6 mbps connection
+ friends, brag clips etc integrated

cons
- needs a WIRED connection, and the more uninterrupted the better
- right now only has about one and a half dozen slightly old pc games, which will obviously improve


you guys should try and voice your opinion. For trying out you can play first 30 mins of any game free.