OnLive to hit UK ?by end of next year?

Radical new gaming operation OnLive should launch in the UK by the end of next year, following a US launch this month.

The system processes games content on external servers, and streams an image feed directly through to a TV or computer, negating the need for a console or high powered gaming rig in the house.

BT has signed an exclusive deal with OnLive to distribute the service with broadband bundles. It will also be made available to PlusNet and existing broadband customers.

“Over time, as consumer broadband connectivity increases and as games become more complex, we expect cloud-based distribution models for gaming to become increasingly attractive and mainstream,” A BT spokesperson told us. “BT is well positioned to help support this transformation. The expectation is that many of the popular games accessible on consoles today will be made available via OnLive. We’ll announce further details about our launch plans later this year, but we would hope to make it available by the end of 2011.”