BT will be the exclusive supplier for Onlive in the UK, offering it as part of new broadband packages.
BT has won the rights to bundle Onlive, the new Cloud-based gaming system, with some broadband packages it was announced today.
Onlive, which was unveiled in March 2009, lets users play games on any internet capable device regardless of hardware
. It works by running the games in server farms and then relaying information between the farm and your device over the internet.
The new deal will see BT package Onlive as part of new broadband offers within the UK, according to GI.biz
. BT has also netted a 2.6 percent shareholding in the company as part of the arrangement, but won't be announcing further details until later in the year.
"Entertainment is going to be at the heart of what we offer customers in the future,
" said Gavin Patterson, CEO of BT Retail.
"The partnership with OnLive complements our existing BT Vision service. It's great for our customers - they'll have access to a huge catalogue of games, available instantly on their TV or PC without expensive hardware...it's great for BT - it will enhance our premium broadband position and we'll be entering into a market that's worth more than £2 billion.
Sceptics have expressed doubt over whether Onlive will run well on current broadband infrastructure and whether users will approve of the pricing model
, which includes a subscription and game rental on top of the cost of a broadband package. The system is set to come out of beta in the US later this year.
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This article has been corrected to address an error in the original news story that indicated BT was the exclusive supplier of Onlive in the UK, when in actual fact BT merely has the exclusive rights to bundle Onlive with some broadband packages.