OnLive to be sold wake of dire financials, laying off 'at least 50 % of staff

[newarkhiphop]

After a lot of back and forth from the rumor mill and official OnLive channels, we now have what we believe to be a far clearer view of precisely what is happening right now at OnLive headquarters in Palo Alto. We've spoken with a (now former) employee of the gaming service who ran down today's events for us. According to the account, a meeting was held at OnLive's offices at 10AM this morning, wherein the company's CEO announced a massive staff layoff -- at least 50 percent of the staff, according to our source's numbers. The layoffs come as part of across the board cuts to the company, and all those out of a job will have their key cards deactivated as of 4PM local time today. The source was understandably baffled by the abruptness of the news, along with the added blow that no severance will be offered and stock holdings are essentially worth nothing.

The move apparently comes as OnLive is being purchased by an unknown party. Those being kept on have reportedly received offer letters from the new company. Why the sudden move? The source believes it may have something to do with the company's massive operating costs, which we're told are around $5 million a month. Certainly those concerns line up with a story dug up by Kotaku highlighting the company's plans to file for Assignment for the Benefit of Creditors as a result of the company's troubled financial situation. We've been promised more information on this topic soon -- naturally we'll be bringing it to you as soon as we get it.

Source: OnLive undergoing acquisition in wake of dire financials, laying off 'at least 50 percent' of staff -- Engadget

dam shame really a fan of them too

 

[Liquid]

They need to work on the interface, it is annoying to browse through everything.

Gamefly would make sense to purchase them...they have a ton of patents. Do some netflix type of shyt in where you cycle games like they do with Movies and offer it as a package deal. Streaming only or Discs + Streaming. You are not going to sell people on "buying" things that they can't even download...that's ridiculous IMO, always has been.

Gamefly already bought D2D though, so I am not sure if they are willing to spend a ton of cash for OnLive

 

[Q2EEzY]

Im shocked