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OnLive, the service that promises to allow you to stream games from the cloud to your television and PC, has recently demoed an iPhone version of their software. The beauty of OnLive is that all of the hardware work for rendering the games happens on their servers, and all you need is an internet connection. This allows them to offer a tiny set-top box to play games on your TV, as well as the ability to play games on computers not equipped with high-end 3D hardware.

Currently, they’re focusing on giving access to their gaming social network, as well as viewing other people playing games, instead of gaming directly on the iPhone. Understandably, it will take them a lot more work to reach that point.

OnLive CEO Steve Perlman wrote up the demo in a recent blog post:

While we’re thrilled about eventually bringing many new games to cell phone platforms, currently, games on OnLive are tuned for TVs and computers. So initially, it’s the Community and Social elements of OnLive that we’re most excited about on mobile devices. It’s amazingly cool whipping out your phone, checking out what your OnLive friends are up to, and then spectating their live game play: Unscripted live user-generated content, available anywhere.

[Source: OnLive via Engadget Mobile]