Streaming assets
I don't think it will rely heavily on h.264 or framebuffered streaming. I do think it might work like something like NDS wifi game sharing where one only needs a copy of the game which transfers game resources to another player.
AppleTV, just as easy as AirPlay, might have some sort of API which can act as a client that can accept streams of bundled assets pushed from iDevices.
Streaming assets are not new, just look at Unity's webplayer and the games that utilizes it as it takes very little time to buffer the main assets to get you started.
For a game to work with AirPlay they would first have to draw their images/frames using the Apple TV's graphics libraries and then they would have to compress that image into H.264 video and stream that to the Apple TV (all in realtime and while keeping the audio and video in sync with the control inputs for the game itself). That would be a very difficult thing to do even with a relatively high-powered desktop computer let alone a handheld iOS device running on a single-core 1GHz processor.
I don't think it will rely heavily on h.264 or framebuffered streaming. I do think it might work like something like NDS wifi game sharing where one only needs a copy of the game which transfers game resources to another player.
AppleTV, just as easy as AirPlay, might have some sort of API which can act as a client that can accept streams of bundled assets pushed from iDevices.
Streaming assets are not new, just look at Unity's webplayer and the games that utilizes it as it takes very little time to buffer the main assets to get you started.