I played over the weekend, I was fairly impressed (mostly because I didn't expect it to work at all). I think the business model is the biggest problem: this is a service for casual gamers with older PCs, but the pricing is too high for casual gamers. If it was $14.95/month and you could play whatever you liked, that'd be fine.
Might also be of interest to Mac owners with no PC.
I might be more interested when the "Micro-Console" ships this winter. An easy way to play PC games on my TV wouldn't suck...
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