OnLive have already woken up interest in cloud-gaming, using a system of remote server processing and rendering that means local computers can be little more than viewing devices, but now that system has been shrunk down to cellphone size. OTOY use the same sort of server-side rendering system as OnLive, but promise that it's usable even through the web browser on a cellphone. To demonstrate it, they've released a video showing an Xbox 360 controller being used to control a FPS on a Samsung Omnia.
Video demo after the cut
According to OTOY, just about any mobile device - whether Palm Pre, iPhone, iPod touch or Android-based smartphone - will be able to access the service. They're currently working on control methods, which will range from accelerometer control, on-screen joypads and even external peripherals.
While it works best over WiFi, it's still supposedly playable with a 3G connection; we're not sure how they've got past control lag, though, nor instability in the phone's connection, especially when mobile. Still, HD-quality gaming without a huge, overpowered mobile console is nothing to be sniffed at, so we'll be watching with great interest to see when OTOY will be coming to market.