According to a report by Dean Takahashi on GamesBeat, OnLive founder Steve Perlman demonstrated the service at DICE with COO Mike McGarvey using a cable modem connection to show how the service handled some unnamed "high-speed shooting games," as well as Unreal Tournament and Burnout Paradise. Takahashi asserts that the demos were glitch-free, and should take the wind out of the sails of skeptics who've claimed that OnLive couldn't possibly work as well as intended.

In one of the more shocking bits of Takahashi's report, he noted that the OnLive team also demonstrated how iPhone users could even play the graphically-intensive shooter Crysis on the service, live and in real-time.

In OnLive's curent state, standard definition games would require a 1 megabit per second connection, whereas high-definition titles would need a 5-megabit per second connection to play properly. Perlman went on to claim that about twenty-six percent of broadband users currently have connections faster than 5-megabits, and that seventy-one percent currently have 2-megabit per second connections.

Perlman also mentioned that the server hosting the games demonstrated in Las Vegas was located in the San Francisco Bay Area, and that he expects that OnLive will be able to blanket the country in service using only five data centers that would need to be updated every six months.

OnLive is still being tested in a closed beta that launched back in September of last year.