OnLive, an on demand gaming company that allows subscribers to play popular console games on line with a broadband connection just received an infusion of cash from an interesting investor. HTC, the Taiwanese smartphone manufacturer just invested $40 million in the broadband gaming app company.

OnLive brings a broadband enabled gaming experience to the TV or PC, without the need for subscribers to buy a console like Xbox or Playstation. They just recently launched a $9.99/month unlimited access tier, allowing subscribers to play unlimited games over their broadband connection (although game titles are somewhat limited). Think of OnLive as the Netflix of gaming, where subscribers stream interactive games over broadband rather than movies and video content.

Due to the high bandwidth, low latency requirements of on demand gaming, OnLive subscribers need to live within 1,000 miles of an OnLive data center. OnLive requires at least a 3 Mb/s connection, but if you’re going to play games on a larger television (40 inches and wider), you need at least 5 Mb/s throughput.

Interesting that HTC would invest in OnLive. One could only assume to see some form of OnLive services coming to a smartphone near you, some day soon. Perhaps on a 4G enabled handset only though.

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