WebGameTV

The days of the traditional gaming console are coming to an end–according to entrepreneur Steve Perlman, anyway.

Later today, Perlman–former principal scientist at Apple (AAPL) and the founder of WebTV–will officially unveil OnLive, the online service with which he hopes to upend the $46 billion world-wide videogame market. Seven years in the making, OnLive promises to create an on-demand gaming experience that rivals those offered by dedicated videogame consoles. It’s capable of streaming even the most advanced, CPU-intensive games to television and computer–Macintosh or PC–without lag or a reduction in quality. “We’re providing you with the latest high-end titles, the exact same ones you would see at Target or Best Buy, in the same release windows,” Perlman told USA Today. “But what is really cool is you don’t need any high-end hardware to play them. There’s no physical media. It’s an all-digital platform. You never need to upgrade your equipment at home.”

A compelling proposition. A potentially disruptive one too, if OnLive is able to deliver it with the reliability and ease of use it promises. Said IDC analyst Billy Pidgeon, “It’s a good idea and has potential, but the thing I need reassurance on is being able to deliver this over the network. In games there’s no wiggle room–when you press a button to fire you want to fire,” he said. “But if it works, this could be a disruptive.”