Today, OnLive has announced a very competitive membership plan for $9.99 a month. With the new flat rate plan, you can play any game that OnLive offers at anytime for as long as you want.

“Top-tier titles are available as individual rentals and purchases, while everything else is available at a flat rate. With these programs, OnLive is effectively offering the equivalent of an iTunes/Netflix combo for gaming.”

The plan is available to everyone who already has the OnLive Gaming System and the people who have pre-ordered the game system. Everyone else will have to wait until 15 January, 2011. GameFly seems to have a bit of competition on its hands now. But, as awesome as this new pricing plan is, I think the lag is still on everyone’s mind. How much lag is there?

Update: Andrew has done a test with the lag. Check out what he has to say about it.

OnLive Offers $9.99/month Flat-rate Video Game Plan; OnLive Game System Shipments Begin

Flat-rate Plan Offers Unlimited Access to Growing Library of Instant-Play Games

Palo Alto, Calif., December 2, 2010–OnLive, Inc., the pioneer of on-demand, instant-play video games, today announced details of its new $9.99/month “PlayPack” flat-rate plan, which is immediately available in beta to OnLive Game System owners and available to all OnLive members on January 15, 2011. OnLive will continue to offer its current free trials, 3- and 5-day rentals and Full PlayPass options for a la carte new-release games in addition to the new PlayPack flat-rate plan for access to a growing library of recent, indie and classic games.

“OnLive’s PlayPass and PlayPack plans give players maximum flexibility to try or buy video games,” said Michael Pachter, Managing Director, Equity Research Wedbush Securities. “Top-tier titles are available as individual rentals and purchases, while everything else is available at a flat rate. With these programs, OnLive is effectively offering the equivalent of an iTunes/Netflix combo for gaming.”

OnLive today also began shipping the OnLive Game System, a $99 controller and MicroConsole™ bundle, providing instant access on HDTVs to all OnLive games.

The PlayPack option is available, in beta, starting today for owners of the OnLive Game System free of charge. The PlayPack game library will steadily expand up to and beyond the January 15, 2011 launch date. After this introductory beta period, the PlayPack flat-rate plan will be available as a $9.99/month option for all OnLive members, including those PlayPack beta members who choose to continue with the plan.

The PlayPack flat-rate plan will comprise more than 40 high-quality games when officially launched, incorporating major franchises immediately recognizable to any gamer. A sampling of the current PlayPack beta game library includes:

Prince of Persia ® , Ubisoft

, Ubisoft NBA ® 2K10, 2K Sports

2K10, 2K Sports Tomb Raider™: Underworld, Square-Enix

F.E.A.R. 2, Warner Bros

Tom Clancy’s H.A.W.X.™, Ubisoft

Unreal Tournament ® 3, Epic

3, Epic Vin Diesel Wheelman™, Ubisoft

LEGO ® Batman™, Warner Bros

Batman™, Warner Bros Defense Grid ® Gold, Hidden Path

Gold, Hidden Path Saw, Konami

World of Goo, 2D Boy

Like all OnLive titles, PlayPack games play instantly on TVs, via the OnLive Game System, or on a PC or Mac® via a small browser download.

“OnLive’s new PlayPack plan is another example of unique value and convenience unlocked through cloud gaming technology,” said Steve Perlman, founder and CEO of OnLive. “People love flat-rate plans for instant-play media, so it’s exciting to introduce this offering to the video game market for the first time. With PlayPass games priced from $3.99 to $49.99, along with the new $9.99/mo PlayPack plan, OnLive’s growing library of games will suit any budget and any type of gamer, from casual to hardcore.”

Some PlayPack games require a mouse and/or keyboard. The PlayPack flat-rate plan will be offered on a month-to-month basis and can be cancelled at any time.

For more information about the PlayPack flat-rate plan, visit www.onlive.com/playpack. For additional details on the OnLive Game System, visitwww.onlive.com/game-system.

About OnLive

OnLive is the pioneer of on-demand, instant-play video game services, delivering real-time interactive experiences and rich media through the Internet. With groundbreaking video compression technology, OnLive harnesses cloud computing to provide the power and intelligence needed to instantly deliver the latest, premium game titles to any HDTV via the OnLive Game System or nearly any PC and Mac via a small browser download. OnLive technology is backed by hundreds of patents and patents pending. The company is headquartered in Palo Alto, Calif. OnLive investors include Warner Bros., Autodesk, Maverick Capital, AT&T, British Telecommunications (BT) and The Belgacom Group. More information is available at www.onlive.com.

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OnLive, Brag Clip and MicroConsole are trademarks or registered trademarks of OnLive, Inc. All other trademarks are the property of their respective owners.