OnLive smell the warm pants of trouble
OnLive, the cloud gaming system, has been subject to a lot of rumours lately. Most of them have been saying that the company is shutting down. Bad news if you work for them, clearly not much of an issue for the rest of the world who has largely ignored it.
It would seem that these rumours were based on very real trouble as it has been announced that the company is laying off half of its staff.
Recently, OnLive were saying that everything was fine, despite staff saying they'd been handed their P45s online. Then, at the weekend, the company admitted that it had been sold, "acquired into a newly-formed company", with new financial backing and keeping on "a large percentage" of their workers.
However, one of the people who have been working for OnLive have come forward to tell PC Mag that "definitely over half" the team has been sacked and, in addition to that, the company won't be handing out any severance pay. Ouch!
HTC have confirmed that they'll have to show a $40 million loss over their investment in the game streaming company, saying: "Due to lack of operating cash and an inability to raise new capital, OnLive had completed asset restructuring over the weekend. HTC estimates that it will need to recognize a $40 million provision for this investment loss."
OnLive was designed to make decent PC games available to everyone online in a model almost like Spotify. You don't own the games, but with a subscription, you can play them as much as you like. The gaming community didn't take it, despite it seeming like a decent enough idea. OnLive will continue as normal for the time being, but this is very much looking like a deathly case.