It was bound to happen, ever since Netflix started the rent vs. own debate, the video industry has been upended. Now we have a similar situation in the gaming industry. While we have Gamefly, which is exactly like Netflix, except for games, there is a new company that take it one step further – OnLive.

OnLive is basically gaming in the clouds. Instead of purchasing a console like Xbox 360 or Playstation 3, you purchase an OnLive micro console for only $99. From there, you can play any game available on the OnLive gaming service for a monthly fee. You can even purchase games for $10 if you want permanent access to them. The games are instantly playable the moment you pay through the online interface. The graphics are surprisingly comparable to the latest consoles. The magic is that the heavy graphic lifting is happening at the OnLive remote servers away from the home, you simply use the micro console to access it from the Internet.

The premise is ingenious, you no longer have to purchase the latest console every few years. OnLive will simply load up the latest game and enhancements to its servers. Plus, it’s heck a lot easier to carry the MicroConsole to your vacation home vs. lugging the Xbox around. Check out the site yourself to learn more or the Businessweek Review of the service.

www.onlive.com