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OnLive Denies Rumors That the Company is Shutting Down [Updated]

According to Polygon and veteran video game developer Brian Fargo, video game streaming company OnLive has fired its entire staff and the company will cease to exist as of later today:
According to e-mails forwarded to Polygon from supposedly former OnLive employees, the company will no longer exist as of today.

"I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist," reads an email forwarded to Polygon. "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."
NewImageHowever, according to Brian Jaquet, OnLive's Director of Corporate Communications, the story is untrue. The company's Twitter feed is still posting normally and, in response to an email from MacRumors, Jaquet wrote:
We don't respond to rumors, but of course not.

[…]

I have no comment on the news other than to say the OnLive service is not shutting down.

I'm sorry I cannot be more specific.
We've followed OnLive for a while, particularly after the company demonstrated an iOS version of its streaming video game software last December. That software was supposed to deliver "console-class gaming to tablets and phones", but is still awaiting approval from Apple to join the App Store.

Earlier this year, the company released a iOS app called OnLive Desktop that used its video game streaming technology to put a full-fledged Windows client on the iPad, including a Flash and PDF-enabled web browser.

Update: Kotaku reports that the company will be filing for bankruptcy and a new company will be created from the remains of OnLive and some employees will be brought over to that organization. Others have apparently been laid off.

Update 2: OnLive has issued the following statement to MacRumors clarifying the situation:
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.

Top Rated Comments

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29 months ago
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Rating: 15 Votes
29 months ago

Whether it's true or not, it makes you wonder what would happen to everyone's games if this did happen. Don't OnLive games cost full price? Would they just lose everything they bought?

That's the problem with paying for a license rather than paying for a product, especially when the license depends on an online service remaining active.


Yes, all of their customer will lose his license. His name is Greg. Very sad.
Rating: 8 Votes
29 months ago
Ah, my favorite PR move: "We don't respond to rumors, but here's our response to this rumor..." :D
Rating: 7 Votes
29 months ago

If you can't respond to a rumour that you're company will no longer exist in a day, then that's a confirmation.

They must have been bought by someone, MS? Guess we'll hear after the market closes today...


He did respond.

He said "of course not"

He went on to indicate the service would continue running.

The headline of the story even said he denied it.

What were you reading?
Rating: 6 Votes
29 months ago
Did Apple just buy them ?
Rating: 5 Votes
29 months ago

How does this news fit into Mac rumors set up?


Some folks with Mac computers use OnLive. Not really quantum science.....
Rating: 4 Votes
29 months ago
Apple only thinks they bought them. Actually, they did everywhere except some armpit country Kadjerkistan, where a bankrupt shell company will sue them for violating their copyrights.

You just wait.
Rating: 4 Votes
29 months ago
Um...the first guy said that OnLive as an *entity* would no longer exist; he did *not* say that the OnLive service was shutting down. The second guy says the rumor is false and that the OnLive *service* is not shutting down. But that's not what the first guy said. So, it seems to me that the service isn't shutting down, they've been bought, existing employees have been fired, and someone else will be taking over.
Rating: 3 Votes
29 months ago
Hey guess what, all you people that invested in this DRM encumbered crap are losing all the games you "bought".
Rating: 3 Votes
29 months ago

The problem is that you have to buy a "Red Ring of Death" prone Xbox 360 console to play the games and it uses a "points" system for purchases.

You might not realize but many people have no interest in owning an Xbox 360.

I'm going to miss the Onlive game that I played on my iMac and the Onlive desktop service on my iPad. Notice how nowhere in that sentence was there an Xbox mentioned?


Xboxes haven't been 'prode to RROD' for a long time, learn what you speak before you speak it.
Rating: 2 Votes

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