VentureBeat reports that OnLive isn't the only company working on a server-based cloud computing video game service, with Acclaim chief creative officer David Perry confirming he too has a similar service in development. Acclaim is not involved.

"I was going to reveal it at [the E3 trade show], but the OnLive news has forced my hand," said Perry.

Perry says that his service will allow the user to play server-based games without any required download to the client machine (OnLive requires a small one megabyte application to be installed), with the only requirement being a broadband connection.

Perry's project is currently a small-scale operation with himself and a few Dutch technologists on board, but he has filed for patents and hopes to raise venture money and hire more programmers. He also believes his company will need to work out a deal with a major internet service provider to help create a video games on demand service around his tech.