OnLive, the Internet-based interactive streaming service hyped as "the future of video games," is also capable of running on mobile devices such as Apple's iPhone, the company has claimed. At the Wedbush financial conference in New York, OnLive CEO Steve Perlman demonstrated his company's game streaming service simultaneously on two iPhones. Perlman detailed the event on his company's official blog. "While we only showed a tech demo today, it was great to give people in the audience a chance to try out OnLive on an iPhone," he said. "The large tiles that make up the OnLive user interface work perfectly on the iPhone touch screen, allowing easy access to all of the features of the OnLive game service."
With cloud gaming, our iPhone wlll run the game from the browser, but all the muscle work and processing will be done in onLive's servers. This means you'll get the game image and the controls, leaving the nasty work for them. They have tested it on the iPhone, but this gaming style is being tested on TV sets an other mobile platforms.
It looks that it has a huge potential, I would like to see how they convince Apple to approve a service like this.