First look: Hands on with the OnLive Game System MicroConsole

If you're a gamer, you already know all about gaming consoles such as the Microsoft Xbox, Nintendo Wii, and Sony PlayStation 3. We recently had a chance to try out an interesting alternative: the OnLive Game System. It's a streaming game service, so you don't need discs or a hard drive: You can use your own PC or Mac computer to play, or you can purchase an OnLive MicroConsole ($99), which is basically a receiver for the streaming games that lets you play on a TV; it comes with a controller.

You start by creating a free OnLive account to which all of your games and profile information are registered and saved. The titles currently available are limited, and prices vary, but with most games, you can buy a limited-time PlayPass for a reduced price—which is basically like renting the game for a few days.

You can also pay for a Full PlayPass, which gives you unlimited access to a game for its lifespan on the OnLive server. The PlayPasses cost from $1.25 to about $50. OnLive will also offer a PlayPack option that gives you full access to as many games as you want for $9.99 a month, but not all new games will be included, and the total library of titles will be limited for this option.

Using the console, I played multiplayer games online, recorded and saved video clips, and watched live games that other gamers were playing. One nice feature is the Game Trial mode, available for some titles: You can play a game for 30 minutes to try it before you buy it. If you decide to pay for the game, you can continue playing where you left off. And an OnLive Viewer iPad app allows you to access your account and view recorded clips and games being played live (but you can't play them on an iPad).

Since the games stream from the Web, an Internet connection is required to play—but unfortunately, the console doesn't have built-in Wi-Fi capability. This means that you need an ethernet connection available for your TV.

When I was playing resource-intensive games such as Wheelman and Assassins Creed II, I noticed that the image quality wasn't as impressive as for the same games played from a disc on a PlayStation 3 and an Xbox 360. This issue is also common with streaming movie services, because of the compression required to stream media. I also noticed some lag while playing, but it wasn't enough to truly hinder my gaming experience. To ensure the best game quality, make sure you have a fast Internet connection.

I also noticed that while the controller that comes with the console works well, the joysticks can be a bit uncomfortable to use, because of the small tabs protruding from the outer edges.

Bottom line: The OnLive console has some clear benefits but also some drawbacks when compared with other consoles on the market. If you're looking for a casual way to pick up and play games and aren't interested in the various home-theater capabilities of the Xbox 360, PlayStation 3, or Wii, then OnLive might be a good choice for you.

—Matthew Ferretti

—Carol Mangis