OTOY to render the games on cloud.
techcrunch.com
techcrunch.com
EDIT: slight rewording.
Between the computation / communication tradeoff, this would have to be a huge breakthrough for rendering.
Ah, there's the rub. It may be rendering a 720p canvas, but for all we know it's rendering a filthy blotchy version of it - much like streaming movies sounds great (and is good as far as it goes), but when you put the image next to a well-mastered DVD - never mind an actual HD system - the differences are painfully obvious. Similarly, if you've ever uploaded some pristine video, which you know very well, to YouTube and then looked at it a few hours later it looks pretty hideous at the normal quality, and only OK at the high quality.
In both these demos the video looks fairly smooth and responsive, but all the same we're seeing OTOY as filmed on a screen by a camcorder and then further compressed by YouTube itself. I strongly suspect that an uncompressed (or non-lossy) capture from FRAPS of the actual video in the browser window will make the difference pretty stark. I would love to be wrong of course.
The other thing I wonder is how this is going to scale and what they need at the server end (I sure can't see this being peer to peer). It does make a difference if the server side is running an nVidia Tesla (~$1500 and up) or some similar graphics powerhouse to do the almost real time compression.
It's still impressive, I like the concept, and they sure took on a big challenge. But I'm not expecting Crysis on the iPhone anytime soon. On a side note, although gaming has the most obvious market and monetization potential, what I find exciting about Otoy are the possibilities for film and scientific visualization.
The significant advantage raytracing brings to this space is that compared to typical rendering techniques camera movement is "instantaneous": you just change the ray origin and paths, there's no need to translate+rotate the entire game world as in typical gpu rendering...which takes you from having to translate the entire world for each frame and then rendering to just rendering.
The thing that both OTOY and Onlive seem to have done is make fast video compressor - which while impressive most likely is made possible because the hardest step in video compression is detecting interframe motion which is available to the compressor directly from the rendering data.
In earlier interviews Urbach spoke about a very fast gpu-assisted transform from polygon meshes -> voxels for use in their raytracer (and some hybrid meshes); the use of such a thing for making demo videos should be pretty obvious.
The video compression aspect is also interesting and probably works as you say; the point of raytracing isn't that it's faster per-se but that not having to keep transforming your scene data means you can more-easily share scene data between multiple simultaneous users on the same box (loosely: you don't need space for N translated copies of the scene data if you have N simultaneous users).
Either way, their 'fusion render cloud' is supposed to be targeting the petaflop range, and @ an extremely generous 1ray = 1flop calculation (bear with me) you'd be able to handle ~333,333 simultaneous players (720p frames) @ 1 petaflop (and with more-realistic flops-per-ray you're looking @ a lot fewer).
You'd definitely need a breakthrough.
The sales pitch for this stuff is you can sell high-end games to people who don't have consoles or high-end gaming pcs; eg, play whatever on your iphones or netbooks or whatnot...think also the existing internet gaming-cafe market in most of the rest of the world.
It seems pretty dicey imho but it has enough logic to it I can see why people'd try it.
(A good exercise can be to get some figures about the polygons/s on a modern game, but I lack the data ;-)
The latency is the big problem here, but with network improvements and good algorithms, this should be solved. VoIP also has this limiting factor yet it works reasonably well.
Game development companies can only benefit from this shift: instant deployment, pay-per-play, 1 single version for all platforms (Apple, Win, Linux,...), no distributed SW (so no piracy), direct feedback of gaming habits, etc.
For the user this would also be beneficial: no need to acquire state of the art graphic cards and CPUs, instant playing, game zapping.
I foresee a brilliant future for this real-time "Computer Cloud Gaming".