When OnLive was first announced, it was announced as a pay-to-play service that would also allow you to pay for games that you could stream to your PC or TV. Video and audio fidelity would be entirely based upon your internet connection, rather than the quality of your computer.
Apparently, the prospect of having to pay a monthly subscription fee of $14.95 in addition to buying games, and then losing said games if you cancelled your service, has hurt OnLive, as they announced today that they will be forgoing the paid subscription service.
From now on, the only thing you will actually have to pay for are the games you purchase on the service. OnLive hopes that the lack of a monthly fee, and the presence of many free demos will increase the user base of the service.
Also, for those wanting to know when you will actually be able to play on your TV, rather than through your PC, OnLive’s CEO has stated that the microconsole required for it is now in manufacturing and still scheduled to come out this year.