The announcement came at the start of E3 trade show in LA.

The company said its hardware would be free with a two-year subscription to its gaming service or $199 without the subscription. The service, starting at $29.95 a month, will offer users certain basic content for free, and access to either buy premium games at prices comparable to regular retail or rent them, usually $5 for three days.

Infinium execs hope that finally demonstrating a functional version of the service at the show would chase away doubts among some industry observers about its planned offering.

The console features a PC-like architecture, with 256 meg RAM and a 40 gig HD, running an embedded version of WinXP. It will use a custom controller and support surround sound and HDTV.

The company is also reaching out to game publishers so they can offer their games on the service. It is also looking for deals with retailers, who would share in the revenue generated from new customers activating in their stores.
Guess even we can be wrong sometimes.

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