OnLive Layoffs Confirmed: Full Details Forthcoming

UPDATE 1:09 PM: Onlive continues to run as of right now. Still no official comment from the company

UPDATE 1:04 PM: OnLive customers concerned about whether they can receive a refund for games to which they might lose access should review this page. (H/T Phil Owen).

UPDATE 12:56 PM: Kotaku is reporting from a source inside OnLive that the company will indeed be filing for ABC bankruptcy status, which will protect them from their creditors. The company known as OnLive will reportedly cease to exist; the remains will be reconstituted as an entirely new entity employing some OnLive personell. This report is backed up by a leaked email sent to Neshoba78.

UPDATE 12:50 PM: Earlier this week, we published a lengthy examination of the challenges facing gaming as a service and the adoption of streaming as the default means by which gamers will game. Click here to read in full.

A few minutes ago, Mashable broke the story that Onlive has laid off the majority of their staff. Game Front has been able to confirm independently, via an extremely reliable source who will remain anonymous, that these Layoffs did indeed occur, beginning after 10 AM Pacific Time. We have also confirmed that the whole company, (minus some key upper management, details still not known), has been let go.

OnLive has not officially confirmed the layoffs, but instead issued a statement to Rip Ten insisting the company will continue to operate:

Thanks for the note. We don’t respond to rumors, but of course not.

The exciting news is that the first VIZIO Co-Stars (Google TV stream players) with the OnLive app built-in have just arrived in customer homes, and our second of three ‘Indie Giveaway Weekends’ is going on now. OnLive users can get a free copy of the award-winning games Space Pirates and Zombies and SpaceChem (more details on our blog here: blog.onlive.com).

In what form the company will continue to operate is not known. We can of course reiterate that these layoffs are not rumor; Currently, laid off employees are packing down and preparing to leave the premises. This story will be updated as more details become available.

Obviously, our thoughts go out to those who lost their jobs today. Here’s hoping you land on your feet.

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5 Comments on OnLive Layoffs Confirmed: Full Details Forthcoming

LTenhet

On August 17, 2012 at 3:53 pm

This is pretty much the exact problem with gaming as a service, as you guys pointed out in your other article. I got into OnLive a while back, and I’ve never purchased games from it; mainly because even though I have a DSL connection, half the time it would say my connection wasn’t fast enough to play the games. And personally, I would rather own the game so I can install and play whenever I want than rely on a server that may or may not continue to exist in a year.

Tiagonal

On August 17, 2012 at 5:23 pm

The Cloud is a shape shifter… I you have ever sailed, you wouldn’t don’t be so fast-minded on clouds apparently vanishing quickly, they may be just omens from the fast winds of storms comming.