OnLive smell the warm pants of trouble

20 August 2012

on liveOnLive, 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.

TOPICS:   TV   High Street News   Games   Mobile


  • plop
    I am shocked that a company charging the same price as a retail purchase to rent a game with low quality visuals and noticeable lag is having financial trouble. Shocked, I tell you.
  • Mustapha S.
    The technology and idea behind it was brilliant. Their business model was greedy and shocking. If it was £3 or £4 a game for the big titles, and £1 for the older ones it might have worked. The UK barely had the infrastructure in place. If this was launched in south korea it would have been a better success. Gaikai shows how its done properly.
  • TimB
    Actually, not quite right - you can in fact "buy" the games, which allows you to play without a subscription, but of course you still don't get any actual product. The subscription model was OK, but didn't give you access to any of their latest games, which you'd still have to buy, at near full retail. I have a few games from their from when they originally launched and any game was a pound. I've barely played on it, but was hoping it would get a new lease of life when they managed to get a working ipad client. I wonder if the console is hackable....

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