OnLive Update: Sold Off Due to Layoffs, Service Will Remain

OnLive, the barely three year old service we reported on way back in 2010, will now cease to exist. The company has been bought out amid layouts by what reports claim to be a single owner. You’re probably wondering- what the hell caused all of this to happen? Well, the company, quite simply, was unable to afford the expensive servers that existed to support a measly 1800 users. Below is the official statement from the company itself.

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.

And there you have it, folks. OnLive is gone- at least, the company that once kept it running is. As for the service, the patents and technologies, and other important miscellaneous assets, those are yet to be determined, especially considering the possibility of a lawsuit against Sony’s newly acquired Gaikai, who may or may not have stolen service technologies from OnLive. Due to the shock and seriousness of this story, it will remain developing for a while now. Expect more on this in the coming days and weeks.

Sources: Joystiq, Engadget

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The man who runs this place. In case you haven't noticed, I'm a tech junkie- dedicated to reading and writing on technology news every second of my life. When I'm not alive you say? Well, I'll be either reading, listening to the wise words of Bob Dylan or sipping down an ice cold Coca-Cola.

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