OnLive rumored to have closed.

[Bane]

The future!

Game streaming company OnLive has reportedly shut down. InXile Entertainment's Brian Fargo has posted a forwarded email from a now-former employee of the company, saying that by day's end "OnLive as an entity will no longer exist." It appears everyone at the company has been laid off. According to statements posted on Facebook, "a new company will be formed" that will coordinate "current initiatives in place."

Sources close to Mashable report that the entire OnLive staff was fired at an all-hands meeting that took place at 10AM PT. The report also claims that "some staffers may be rehired as the company transitions to its next unknown iteration."

OnLive offered streaming games that could run on a variety of devices, including PC, Mac, and Android. The company most recently announced a partnership with Ouya to bring their services to the Android-based device. OnLive also offered its own standalone TV-connected console.

It's currently unclear what will happen to customer's OnLive accounts in light of today's news. Users that purchased software through the service will not be able to access their content should the service shutter. Shacknews will contact OnLive for more information.

Shacknews

I wonder what this could mean for Ouya.

[Onslaught X]

Gaikai/Sony wins. Suck it OnLive.

[rm082e]

Yep, no surprise. I'm just confused how Gaikai managed to sell and didn't wind up in the same boat?

[KageMaru]

Their response to the rumors:

Joystiq reached out to OnLive directly to ask about the rumors, and Director of Corporate Communications Brian Jaquet replied to us with a blunt denial: "We don't respond to rumors, but of course not."

http://www.joystiq.com/2012/08/17/on...of-course-not/

Yep, no surprise. I'm just confused how Gaikai managed to sell and didn't wind up in the same boat?

Maybe they were in a similar boat and was saved by Sony?

[rm082e]

Maybe their in a similar boat and was saved by Sony?

With a 330 million dollar check? Errr....I need saving too. Give me Sony's phone number.

[Dweedlebug]

Users that purchased software through the service will not be able to access their content should the service shutter

This is the primary issue I have with streamed content.

[BettiePage]

Users that purchased software through the service will not be able to access their content should the service shutter

This is the primary issue I have with streamed content.

They need to update the text to cross out "purchased" and swap it for something else like "lease"

[KageMaru]

If they do end up shutting down, I wonder what or if they'll anything to compensate for the games people have "purchased".

With a 330 million dollar check? Errr....I need saving too. Give me Sony's phone number.

Yeah no kidding lol.

Also realized I originally typed out that post like an idiot, smh.

[Bane]

Their response to the rumors:

Lol, I don't think anyone knows what's going on, even OnLive themselves.

Kotaku is reporting that despite OnLive's denials, the company is filing for bankruptcy in the state of California. The intent, according to Kotaku's source, is to reform the company as a new entity with a smaller staff. What that company will look like and what it's plans are for OnLive's current services are still unclear. Other sites are also citing more sources from inside OnLive confirming the layoff portion of the story. Still some questions floating around, but it looks like things are becoming a bit clearer.

Giantbomb

[michealo]

If true........ I told you so

[Favelle]

If true........ I told you so

And if not true, vice versa?

[twonunpackmule]

*crickets*

[Bane]

And if not true, vice versa?

Given its irrelevance so far? Nope.

Anyway, update to the original story:

Speaking to Shacknews, an OnLive representative said that "we don't respond to rumors and have no comment." The service will remain open, but there's still no word on the extent of layoffs. Analyst Michael Pachter tweeted that financing is "not an issue" at OnLive, so "it must be a changed strategy to an all IP model."

If this is a change in the company's strategy, that seems like a sign things weren't working well.

[rm082e]

UPDATE 2: IDG News' Martyn Williams reports that he's outside OnLive's offices right now, and has seen multiple employees exiting the premises with moving boxes.

http://www.giantbomb.com/news/onlive...dated-x2/4322/

michealo told us so.

[MA16v3]

I don't care for the idea of cloud gaming. Especially with bandy caps being universal at this point.