A touch-screen apparatus and method are described for controlling an online video game. For example, one embodiment of a touch-screen apparatus comprises: a touch-screen display for displaying images and receiving user input in response to a user touching the touch screen display; a network interface for establishing a network connection with a gaming server executing a video game in response to user input from the apparatus, the gaming server compressing video output from the video game to generate interactive compressed streaming video, and transmitting the interactive compressed streaming video generated by the video game over the network connection to the touch-screen apparatus; a memory for storing program code and a processor for processing the program code to generate a touch-screen graphical user interface (GUI) comprising: a plurality of user input elements providing user input in response to the user selecting the user input elements on the touch screen display; wherein the user input is transmitted from the touch-screen apparatus to the gaming server to control the execution of the video game.