There are times when it doesn't work. My home internet connection, which ranges from around 10 to 12 Mbps, was mostly up to the task, but if your connection dips below 5 Mbps, games almost become unplayable. There's some kind of dynamic resolution shift, like Netflix uses, to lower the quality of the video as your bandwidth drops to maintain smoothness. But the thing is, it doesn't selectively change the resolution, so stuff like text and menus, even OnLive's own menus, can quickly become unreadable. I also noticed a lag when I was using a slower connection, which is basically unacceptable for gamers. And even on my decent-to-pretty-good home connection, sometimes OnLive would have trouble maintaining a high resolution, for no reason I could tell.