OnLive goes bust, lays off staff

Business

August 18, 2012

Cloud gaming service OnLive has apparently gone kaboom, laying off all their staff and filing for bankruptcy.

The news comes via InXile Entertainment CEO Brian Fargo, who said on Twitter that he had received the news via an email from one of OnLive employees, it reads:

“I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist. Unfortunately, my job and everyone else’s was included.

“A new company will be formed and the management of the company will be in contact with you about the current initiatives in place, including the titles that will remain on the service.”

Fargo also said that just minutes after receiving the e-mail, he received a request to recall it. OnLive’s director of corporate communications Brian Jaquet has responded to questions over OnLive’s closure, saying, “We don’t respond to rumors, but of course not.”

He also stated, no comment on the news other than to say, the OnLive service is not shutting down”. While the service may still be running, Jaquet says nothing of the reported job losses.

Another source said that CEO Steve Perlman had said in a staff meeting that OnLive was filing for bankruptcy. The same source said that the service will “probably” continue, but “the company as it stands now would cease to exist” and “no one would be employed by OnLive”.

Finally, it’s been reported that “a subset of employees would be brought on to the company created from the remains of OnLive.”

A recent update reports that OnLive is being purchased by another, unknown buyer, who reportedly “wants all of OnLive’s assets – the intellectual property, branding, and likely patents”. The same source suggests the cuts were made to reduce the company’s liability during the takeover.

CEO Steve Perlman has still confirmed nothing, but the source has been corroborated by both Engadget and TechCrunch.