Didn't I see this concept years before? I mean around the time the PS3 was still in it's infancy concept stages and it was going ot have a boomerang remote controller?
About several years ago, there was a very similar product or service in the works, i forget the name, but it leveled some of the same ideas.
You buy a box, download games and connect, play everything over an internet connection. Sure, there might have been a call for a T1 line but, a lot of people download there content to PC's and 360's for the same reason they bought there respective systems and what not.
Another thing I don't like is the fact that they insist on an HDMI port and internet connection. Meaning I would have to pull another 40 bucks a month out of thin air to play on this service versus my 30 bucks every few months thus saving money.
It's a very infant concept that, for the most part will run into errors. What about all of the information being stored abroad? Will that allow developers to make on the fly additions to games? correct software issues? What happens if the server crashes or it's infected with some kind of virus. What of the hundreds of thousands being invested into this server that, for the most part isn't 100% insured by a physical disc. I'm sorry, i think with the unlimited amount of space out there in the net it would still lead to non innovative/boring games. We gave some companies up to several GB of space to create a game, what do we get? RE5...