I joined OnLive a few months before the v1 product shipped live. It was very much in "demo ware" state and it took a gigantic effort to get it ratcheted up and ready to ship. We had to decide on the purchasing model and then design it. We also had to make sure all screens had defaults, fall safes and fall backs. In addition we added the sound effects to the service. The marketplace needed to be designed and game details pages locked down. Much sweat and tears went into this baby.
...If, however, you're an early adopter with an eye for quality hardware, a killer internet connection and your head literally in the cloud, $99 is a fantastic price for a taste of the future. It comes with a free game, too.