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I've never even heard of it. It sounds interesting though.

Really? You're missing out. Onlive is a free-ish game streaming service. I've used it on my PC/Laptop before, but think it's made more for Tablets. The desktop service is only available in the US at the moment, but looks good. Lets you emulate a windows desktop with some office features and also some online storage.
 
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Onlive is pretty cool, if only I could spare the bandwidth, but it's def the future of gaming.

I'd be surprised if it doesn't work straight out the box, the Nexus 7 isn't that different from the Galaxy Nexus, which I've played OnLive on, certainly in terms of screen size etc.

My major gripe is that most of these games just don't play well with a touchscreen. Perhaps a physical controller hooked up over BT would be the solution.
 
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I've tried it on PC and I thought it was pretty decent. It doesn't compare to playing the game locally, as the video is pretty heavily compressed and there is a slight but noticable ammount of input lag, but it is certainly a useful way to play games on lower spec PCs or mobile devices.

I think the thing I like most about it is being able to play any full retail game (not a demo) for 30 minutes as a trail. Then you can purchase the game elsewhere :p
 
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