OnLive allegedly bankrupt and ceases to exist

We had just been talking about the new forms of content distribution that are changing the gaming scene when it comes this news: Kotaku reports that Onlive has declared bankruptcy (though not exactly a state bankruptcy but technically similar but differently named "allowance the benefit of creditors ").

Supposedly pioneers in cloud games are in serious economic problems but a representative said the service will continue on.

On Friday morning there was a meeting where the workers were informed of the situation of the company by President Steve Pearlman, who said that it has requested the status mentioned to have some protection from creditors and OnLive as such ceases to exist, ending all current jobs.

A new company will be formed to be announced from the remains of OnLive , which can accommodate only current staff.

Brian Fargo, developer and president of inXile Entertainment sent the following email to Kotaku:

I wanted to send a note to the end of the day, OnLive will no longer exist as an entity. Unfortunately my work and that of all others is included [...].

Given this news, the Forbes website immediately contacted Brian Jaquet , director of corporate communications for OnLive who answered

Thanks for the note, we have no comments.

Forbes When pressed for an answer, Jaquet said:

Let me be clear. We will not leave the business (we are not going out of bussiness).

And that was all he said, but in truth it was as clear as his words belie Kotaku report.

It is a sad news but hopefully the company reborn from its ashes and clear, I can not help but wonder what will happen to the contract that had been Ouya with the service.