OnLive Denies Reports It’s Gone Out Of Business

Reports have surfaced that OnLive, probably the most well known of the game-streaming services, has laid off all of its staff and ceased business. The company has issued statements to numerous websites denying the accusations but it doesn’t look particularly positive for them.

You’ll remember, of course, that Sony recently acquired OnLive’s competitor Gaikai in a $400 million deal that will see Sony TVs and hopefully PlayStation devices benefit from the presence of instant streaming videogames. OnLive has always been positioned to sell, building up a buzz and an install base by giving away many of the micro-consoles that offer a simple way to access the service. Has Gaikai’s acquisition beaten them to the punch?

InXile’s boss, Brian Fargo tweeted about the issue rather bluntly. “Just received an email that OnLive is closed as of today”

According to Mashable, many of the company’s employees were laid off on Friday and there are rumours that they may blame the CEO, Steve Perlman, for failing to sell the company despite the many opportunities he had.

It makes sense for someone to step in and attempt to acquire them now. That might be Microsoft – to compete with Sony’s Gaikai move – or Sony to seal up the many patents OnLive holds and strengthen their position. Perhaps a third party might take the gamble.

According to Twitter account seems blissfully ignorant of the issue and the PR approach seems to be to deny it, despite the apparent bankruptcy filing. There’s no word of what will happen with the current promotions or with customer’s existing subscriptions and purchases on the system but when we know more, we’ll update this report.


  1. Tweets will just be scheduled Hootsuite ones probably.

  2. There’s definitely something big going on, several journalists are outside the OnLive offices are are reporting that large numbers of staff are leaving, some visibly upset, and most carrying boxes of personal belongings. Sure sounds like someone has pulled the plug.

  3. Ive been folloiwng @brianfargo ‘s tweets about this for a bit…


    OnLive staff can be seen exiting the Palo Alto offices carrying boxes and personal belongings.

  5. Kotaku reports than an internal source claims the company will file an Assignment for the Benefit of Creditors in California, and will cease to exist before a new company is reformed in its place. Gamasutra reports that an affected employee has confirmed that the entire staff was laid off this morning.

    • Also my two cents on OnLive as a service. Good for console gaming, bad for PC gaming.

  6. Hmm, I wonder what will happen to my copy of Batman: Arkham City that I bought for $1.00? Ah well, hopefully I could get a refund?

  7. Sony NEED to buy them. It would shut the door. They own Blu-Ray, this would lock down any next gen advantages.

    • They don’t own blu-ray.

    • lol at ignorant comments like Sony own Blu-Ray.

      Sony are just part of the Blu-Ray consortium made up of dozens of companies like Panasonic/Samsung etc.

      Sony is just the most visible of the members due to PS3.

  8. wow not even been out a year in the uk. that didn’t take long.

    maybe they should had thought twice about giving them away at eurogamer. well at least it will make a good door stopper.

  9. I wonder how many actually bought games on onlive? I’d guess it was dead money now? Feel sorry for those facing unemployment though.

  10. “i’m not dead!”

    • “I’m just very badly burned…”

      • “You shot me right in the arm!”

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