OnLive changes ownership and dismisses all staff

Yesterday I commented that there was already very strong rumors that pointed to that OnLive would cease to exist as such . The pioneers of the formula of streaming video games seemed bankrupt and although its CEO Steve Perlman claimed that the company would still be alive had the really bad thing.

Well, I fear that the rumors have proved true and OnLive has laid off all its staff and has made ​​official its purchase by a mysterious company that has not wanted to give more information.

We can confirm that the assets of OnLive, Inc. has been acquired by a newly formed company, and supported by a substantial investment fund. It will continue operating and gaming services OnLive Desktop, besides supporting all applications and devices OnLive, and their societies.

This new company will hire a large percentage of employees from all departments OnLive and plans to continue hiring more people including additional staff OnLive. All previously announced products and services, including those in which they were working, go ahead and do not expect any interruption in service.

We regret the failure to disclose further details on this subject until the transaction was completed and been limited us to discuss business-related news from OnLive. Now that the transaction is done we can release this statement.

According to some leaks of the meeting that Perlman had with her ​​now ex-employees, the buyer would be an individual "well-known venture capitalist and business" that is "very rich". Yes, despite what is said in the press release, the same Perlman employees have commented that "most of the workers would not be rehired," and even worse, those who have been dismissed will not compensation and those who held shares of the company have been left with virtually worthless in their hands because now they have no value.

At the same meeting, the CEO who had been tried to explain the reasons why the company went bankrupt . Apparently, it was a matter of growth was not commensurate with the number of users of the service.

There was no way to accurately estimate we would need as servers. So we bought thousands of them, and all equipment and networks they need to work ... If you have servers and 1,600 users 8.000, how can we have positive numbers?

It remains to see if it really will be possible for the company to get up and get back the strength and confidence to survive. Because it is clear that no player would want to buy games that can literally disappear without trace. It's a shame that the company has run aground, especially since the idea behind the project was really interesting though unlikely now for the quality of the connections for streaming.