There were rumors flying around all day today that Onlive, creators of the first and largest cloud gaming service was going bankrupt and closing their doors. These rumors started with an email that said that Onlive was laying off many of their employees. Online was quiet for most the day stating ‘no comment’ to most inquiries until they released a statement just recently.
We can now confirm that the assets of OnLive, Inc. have been acquired into a newly-formed company and is backed by substantial funding, and which will continue to operate the OnLive Game and Desktop services, as well as support all of OnLive’s apps and devices, as well as game, productivity and enterprise partnerships. The new company is hiring a large percentage of OnLive, Inc.’s staff across all departments and plans to continue to hire substantially more people, including additional OnLive employees. All previously announced products and services, including those in the works, will continue and there is no expected interruption of any OnLive services.
We apologize that we were unable to comment on this transaction until it completed, and were limited to reporting on news related to OnLive’s businesses. Now that the transaction is complete, we are able to make this statement.
There are no hints to who could have acquired the Onlive gaming service, if I were to put my money on it I would think it would be Gaikai whom is its biggest competitor. A few Onlive employees were sighted today leaving the offices with boxes in their hands which would indicate layoffs.
News of layoffs stirred also from a rumor that the company had an all hands today which is when they announced the new acquisition and the layoffs of employees.