Pachter states that OnLive should appeal to families that have yet to buy into the current generation of consoles, especially if the service is priced right. The sweet spot, apparently, is right around $5 a month. A higher price could be met with "consumer resistance," says Pachter. Furthermore, Pachter is already predicting that OnLive may not last long as a standalone service, suggesting that it might be purchased by another company and offered as "part of an expanded service offering."
For example, Microsoft could purchase the company to further expand the Xbox as an entertainment hub -- Pachter notes Microsoft's previous acquisition of WebTV, which was co-founded by OnLive CEO Steve Perlman. That's assuming neither Apple nor Verizon beat Microsoft to the punch, of course.
It's too early for us to say if any of this will come to pass -- we're not analysts, after all -- but we were certainly impressed with our own OnLive experience. Still, until we can plug OnLive into our internet and play Crysis for ourselves, we're a bit skeptical. That's okay though, because we're supposed to be.