OnLive reportedly shutting down, new company forming in its wake

By ACTIONpack
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Grand Master

ACTIONpack

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ell, here's a bit of a shocker. After a strong showing at E3 and partnerships with companies like OUYA, gaming service OnLive is reportedly closing down, with an entire staff layoff resulting. At a glance, this sure feels a lot like the similar rise and fall of InstantAction, which was attempting to pull off something similar with cloud-based gaming. Polygon is reporting the story as relayed to the site by game developer Brian Fargo. We've reached out to the company and received a non-comment comment, "We don't respond to rumors and have no comment." Our OnLive contact also used the opportunity to plug its Google TV tie-ins and few giveaways -- so, for the moment at least, things seem to be moving along as usual.

Update: Joystiq has reached out for comment as well, getting a similar, yet decidedly more blunt response: "We don't respond to rumors, but of course not." Blunt response or no, we're sure this isn't the last we'll be hearing about this one.

Update 2: We reached out to OnLive again for clarification on whether the denial pertained to both the shutdown and layoff rumors. The response reads thusly: "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."

Update 3: Martyn Williams from IDG has reported there are employees leaving the OnLive offices with moving boxes.

http://www.engadget.com/2012/08/17/onlive-service-reportedly-shutting-down-laying-off-staff/

Grand Master

+Xinok Subscriber²

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I was rather impressed with what they accomplished with OnLive. But while it was an impressive bit of technology, it failed to be practical. You needed a dedicated wired connection to get decent gameplay, the graphics weren't so great, and there was noticeable lag in some games. In the end, why not just get a 360 or PS3?

Grand Master

remixedcat

Posted
Posted

I was rather impressed with what they accomplished with OnLive. But while it was an impressive bit of technology, it failed to be practical. You needed a dedicated wired connection to get decent gameplay, the graphics weren't so great, and there was noticeable lag in some games. In the end, why not just get a 360 or PS3?

Feel the same. Also ISPs would have to catch up big time and bump everyone up to at least 150+Mbps (so others in the household can still be able to use the internet while people are playing) and have pings in the single or in the low double digits in order for this to really work on the scale Onlive wanted. The avg. connection in the US is like 3-4mbps and 500ms pings. That chokes on pure HD videos, let alone a system like Onlive.

Veteran

~Johnny

Posted
Posted

I was rather impressed with what they accomplished with OnLive. But while it was an impressive bit of technology, it failed to be practical. You needed a dedicated wired connection to get decent gameplay, the graphics weren't so great, and there was noticeable lag in some games. In the end, why not just get a 360 or PS3?

The point was I could get a console for ?39.99 with a free game, then play that game anywhere instantly - whether it's a tablet, computer or console. And then you could pay only ?6.99 a month for access to over 260 complete games you can play anywhere you have a connection instantly just by signing in. Granted you need a decent connection, but for those of us who do and are tight on budget, it was a lovely deal.

Grand Master

HawkMan

Posted
Posted

I was rather impressed with what they accomplished with OnLive. But while it was an impressive bit of technology, it failed to be practical. You needed a dedicated wired connection to get decent gameplay, the graphics weren't so great, and there was noticeable lag in some games. In the end, why not just get a 360 or PS3?

As I said in another company, this has nothing to do with the company going under. they where if nor making money, getting there fast, and had more than enough reserves to go on. this was purely about greed.

In a Move that would be illegal in any other country and most other states, the owner filed for a special type of bankruptcy, allowing him to discard all employees, all their benefits for this they chose to rehire, ditch all their stock options for the company THEY helped build and make valuable. Meanwhile the bigger investors like Intel and HP, who has big expensive lawyers, they got their money back (nothing shady about that....). And all of the IP of the company was sold of to another single backer giving the CEO full control. he can now rehire staff with no benefits, lower pay and no stock options. (personally I hope they all say no thank you and anyone else offered a job does as well, but it's unlikely today).

Interestingly OnLive doesn't even own the IP they just sold. that is all owned by their parent company Rearden Labs, a patent hoarder company. so this new single investor basically bought, nothing.

Wonder if Ouyja would be in contention for purchasing the service?

With what ? their 8 million pocket change, that they expect to be enough to start large scale mass production ? Not a chance. besides it's already bought by a single investor.

Grand Master

Boz

Posted
Posted

It's only a shocker if you have not seen that distributed gaming is the stupidest idea ever conceived. The costs and amount of money required to bring quality experience with enough servers, while having the same quality of output.

I always thought this was a stupid idea and shocker, they are going bankrupt.

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