Cloud video gaming service OnLive is in for quite the belated Christmas gift this year, as they are receiving a $40 million dollar investment from smartphone Manufacturer HTC.

For those that don’t know, OnLive  allows users to stream games to their PC and their TV, with the recent release of their MicroConsole last year. They also currently offer a free Viewer app for iPad that is expected to eventually support “full game play capability.”

While the amount of this investments may seem like chump change to HTC, considering they pulled in $500 million dollars in their last fiscal year, it should act as a great boost to the OnLive service. Of course, a company just doesn’t invest 40 million in another company without expecting anything in return.

From the sounds of a recent statement made by Maggie Cheng, a spokeswoman for OnLive, HTC will be benefiting greatly from this, noting that the investment will:

“strengthen its gaming capabilities and help HTC tap into increasing demand for games on smartphones”

On top of HTC strengthening their gaming capabilities, maybe they’ll receive a few additional bonuses for their huge investment. Perhaps we can expect on-demand games streamed directly to our smartphones, or an exclusivity deal where certain games (or OnLive itself) will only be available for HTC smartphones. HTC specializes in making smartphones that run the Android and Windows Phone 7 operating systems (also Windows Mobile before it was phased out). It’ll be interesting to see if and how OnLive could be incorporated.

HTC investing in OnLive is a smart move on their part. With Sony announcing the Xperia Phone at the Mobile World Congress next week, Android being made available on a plethora of mobile devices, and the iPhone now available on two carriers, the competition is only getting stiffer. HTC is going to need an edge to set itself apart. Since OnLive is one of the gaming companies already listed to attend E3, most likely there will be an announcement about how this 40 million is being put use. Be sure to check out our OnLive impressions to get a better idea of what HTC found to be so valuable.

Would OnLive exclusivity make you more interested in HTC phones? Are games an important factor in determining which phone you buy?

Source: Engadget

tags: HTC, Mobile, OnLive

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