- No downloads. Client is only 1MB.
- Run on any PC as long as you have the bandwidth
- Plug into your TV with HDMI for a console-like setup
- Works great with a USB Xbox 360 controller or with a wireless adapter. You can also use the 360 headset.
- You can spectate your friends' games with voice chat
- Demo any game for 30 minutes for free including multiplayer
- Games are cheap. They have a different game every friday on sale for $5. They regularly have other sales beyond that for 75% off any game.
- If you don't have HDMI out, they will throw in a microconsole for free with a pre-order of certain games.
- Lag is only noticeable if you're looking for it. It's minuscule.
- There is a viewer app for iPad if you're into that sort of thing
- Multiplayer is limited to OnLive only. This is both a benefit and a drawback. The benefit is that there is no modding or cheating that will ever get on the service.
- The friends list size is unlimited. I know someone who has 500 onlive friends.
- There are email notifications for messages
- You can create brag clips and share them with friends
- They have plenty of financing and are already financially successful. You don't have to worry about them going under.
- Bandwidth is sufficient on a standard cable modem plan with wired ethernet. I can even play most of the time on WiFi. Sitting in bed playing Homefront multiplayer with a wireless Xbox 360 controller.
- Turtle Beach headset works with it.
Drawbacks
- There are no cross-game invites... yet.
- Multiplayer voice chat has to be added by the developer. So far it's only in Borderlands.
- You can't see your friends' status (on or offline, what game playing) in the guide, only in the dash.
- Multiplayer lobbies are not always full like on Xbox. It's still an emerging service so multiplayer population can be low or non-existant at times.
- You can't sell or trade games after buying them
- If you somehow end up switching to a really slow internet connection, you won't be able to play any of the games you paid for.
- The game selection is kind of limited. They have pretty much full support from THQ, Ubisoft, and Square Enix. They do not have Activision or EA. It's rumored that this could change with EA in the near future though.
- You can't play mods or mod the game yourself. (Which you can't do anyway on consoles)