A new way of video game distribution has been unveiled at the Game Developer Conference in San Francisco. Called OnLive, the new system aims to let users’ stream on-demand video games straight to their PC’s and TV’s using a new distribution network.

The new OnLive service could provide competition for the high-end games consoles such as the Playstation 3, Xbox 360 and the Nintendo Wii. Talking about the new network, company founder Steve Perlman said: “OnLive is the most powerful game system in the world”.

Adding that, “No high-end hardware, no upgrades, no endless downloads, no discs, no recalls, no obsolescence. With OnLive, your video game experience is always state-of-the-art”.

The company has developed data compression technology; this allows the games to be powered from remote servers, as opposed to being on games consoles. Users can download the games instantly to their home computers or through the OnLive Micro Console, which allows game to be played on any TV; all that is required is a high speed internet connection.

OnLive has already signed up nine games developers including Electronic Arts, Ubisoft, THQ and 2k Games, which will give users access to the latest and most advanced solo and multiplayer games.

 The OnLive game distribution service is due for release this winter and only time will tell if it will change the way we play games in the future.