Unconfirmed reports have been spreading across various social networks (and Mashable) in the last few hours claiming that cloud streaming service OnLive has laid off its entire staff and will be closing its doors.
According to a supposed inside source, the company called the staff together for a meeting at 10am PDT, during which everyone was fired. Some of the staff members that have been let go may be rehired as OnLive transitions to some unknown future iteration.
This news comes only days after the announcement of a partnership between OnLive and Ouya. Some hoped that OnLive’s large library of streaming titles would help to bolster the independent console’s own upon its release. The loss of this partnership could be a real bummer for those that backed it.
The word is that many employees blame the company’s failure on it’s CEO, who supposedly refused to sell the business to interested parties on multiple occasions. Early speculation suggests that OnLive may ultimately end up as a purely IP based operation in the future due to the considerable number of cloud streaming-based patents the company holds. Just what we need, another patent troll.
We’ll update this story as it develops.
UPDATE: OnLive is denying the rumors. According to Director of Corporate Communications Brian Jaquet: ”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.”
So, maybe the rumors aren’t true after all.
UPDATE 2: Scratch that, it appears that something is indeed going down with OnLive despite their previous comment. It appears that the company has been facing financial difficulties in recent months, and as a result are being forced to file for what is known as ABC -Assignment for the Benefit of Creditors, something that is very similar to Bankruptcy but technically isn’t. ABC status assigns a company a certain level of protection from creditors. CEO Steve Perlman has clarified that OnLive will indeed cease to exist, all employees have been laid off and a new company will be soon be created from the remains of OnLive that will rehire some of these employees.