Methods for streaming online games using cloud servers and shared compression

A system and method are described for an online game service. One method includes receiving a request from a client device interacting with a game application. The request is received by a server of the online game service. Then, receiving a control signal from the client device in response to an input made when interacting with the game application. The control signal is transmitted over a communication channel between the client device and the server. Executing a game associated with the game application by the server to generate a video stream comprising a sequence of images. Compressing the sequence of images of the application in accordance with a compression process to generate a compressed sequence of images using a compression resource used by said server and at least one other server of said online game service. The compression resource includes compression hardware or hardware running software that handles the compression of sequences of images for each of the servers executing games for the online game service. A state of each compressing operation processed for each of the servers is stored to enable the compression resource to take input from at least two of the servers and switch context of taking said input from among the two or more servers as the compression resource cycles taking input from among said respective two or more servers. And, sending respective compressed sequences of images to the client device or other client devices using the online game service via outbound routing that processes output of said compression resource.