OnLive's Chief Executive Steve Perlman revealed plans to implement a video game streaming service on mobiles, which could threaten to make home consoles obsolete.
Speaking at a financial conference in New York, Perlman demonstrated OnLive's service running on both a PC, a television and two Apple iPhones.
OnLive is a service that will allow users at home to play games remotely, with the content powered by a centralised server and streamed to their televisions or PCs.
In the future this would remove the need for multiple platforms, expensive hardware upgrades and restrictive manufacturer allegiances.
Perlman highlighted the fact that mobile phones represent a very different technical challenge for the OnLive team and made it very clear that in the initial stages, OnLive Mobile would emphasise its social networking aspects over gaming.
Observers predict that the availability of OnLive on mobile platforms would bring console quality games to phones, but would potentially result in a rise in price points for mobile gaming.
There is little doubt that the potential for the OnLive service is huge, although its practical implementation has yet to be fully tested on the consumer market.