“Cloud gaming” has a future—just maybe not in the cloud

Nvidia has reminded us that they want to virtualize the graphics processor. The company wants to take it out of the computer on your lap or on your desk and put it into a server somewhere without you noticing the difference.
There are situations where this makes sense. Given the cost of buying and maintaining workstation hardware, Nvidia's argument for the VCA seems more or less convincing. But I'm slightly less optimistic about the prospect for the Grid gaming server, or any cloud gaming service, really—call it leftover skepticism from OnLive's meltdown earlier this year.
No matter how fast your Internet connection is or how near you are to the server room actually rendering your game, Grid just won't be 100 percent as smooth as local rendering all of the time.