The cloud videogame service OnLive announced Monday that it's dropping its plans for a monthly fee. The service launched June 17 and wasn't charging the monthly fee in its first year as part of a special promotion.

Members still need to pay for games, which stream from OnLive's servers and don't load on your PC. This means members can use a number of OnLive's other features for free. "Basically, if you want to do a 30-minute demo, watch or 'spectate' in our Arena, or if you want to watch clips, that's all free," says OnLive spokesperson Jane Anderson.

In a post on the OnLive website, Founder and CEO Steve Perlman said, "It's official: There will be no base monthly fee for the OnLive Game Service going forward." He added, "Although we wish we could have confirmed no monthly fee from the get-go, pioneering a major new videogame paradigm is hard: We had to first grow a large base of regular users before we could understand usage patterns and operating costs. Now that we've reached that stage, we can confidently say a monthly fee is not needed."

Perlman also mentioned upcoming features, such as TV adapters and gamepad controllers currently in production. "Founding Members get first dibs," his message said.

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