It will be very interesting to see what comes of the recent announcement for the OnLive "games on demand" service. If it does actually manage to work as advertised, it could potentially disrupt the entire video game industry.
That's a big "if" since OnLive's claims are still unproven, but it's still scary. It seems that many game publishers, and probably a lot of casual gamers, would be very happy if it does work. The obvious big losers would of course be game pirates and hardware vendors (PC and console makers alike). Perhaps less obvious is that hardcore gamers, and especially modders, would be big losers, too.
Then again, maybe OnLive will inspire some strange new alliances. Could it force console makers to consider opening up to modders? Unlikely, but you never know. One thing is fairly certain: if OnLive does work, all bets are off.