At the London Games Conference, Xbox Live EMEA boss Jerry Johnson told the audience that streaming game services like OnLive isn’t ready for mass-market in the near future.
Johnson believes that “streaming technology is something that the industry is betting on longer term… right now I don’t believe that technology can scale out against the experience [...]

Microsoft is rumored to unveil a new handheld device at E3. Called the ‘ZuneX,’ the device may feature Xbox Live Arcade, media player capabilities, and support for OnLive.
Microsoft has neither confirmed nor denied the existence of the ZuneX.
Link

Time Warner Cable, the nation’s second biggest cable company, is planning on charging for the amount of bandwidth you use. This would affect gaming companies like Sony, Microsoft, and to a larger degree, OnLive. Perlman, however, isn’t concerned.
Link

Another take on why OnLive is really geared for the customers (i.e. Microsoft and Sony) and not the gamers (for now). Essentially, the costs of the infrastructure behind the game service is tremendous and OnLive may need to be bought out in order to cover these costs. This may explain why OnLive has only stated [...]

We already mentioned Google and Microsoft, but Keith Boesky, former Eidos president, believes that Apple may have interest in the game service company as well.
Link

Competing cloud-gaming service, Guy de Beer, essentially states that OnLive won’t be able to compete with large ISPs like Comcast and Verizon. In order to do so, he thinks that OnLive will probably sell it to ’someone bigger’ for $2B.