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RUMOR: OnLive Fires Entire Staff, Company Denies It’s Closing

Posted on August 17, 2012 AT 12:32pm

It’s not official yet, but reports are coming through the newswire that OnLive will be shut down by the end of the day, as the company has allegedly fired its entire staff as of this morning. Currently, the company is still posting updates on their social media feeds as if it’s business as usual, but the story’s still developing.

Mashable is heading up the breaking news, as their inside sources claimed that the company’s entire staff was fired at once during an all-hands-on-deck meeting:

According to a source close to the situation, the company called an all hands meeting at 10am PDT, at which the entire staff was fired. Some staffers may be rehired as the company transitions to its next unknown iteration.

Our source tells us that many employees blame the failure of the company squarely on the CEO — who refused to sell the company “many times.” There is speculation that the future company may simply be pure intellectual property play. OnLive reportedly has lots of patents covering cloud-distributed content, especially in 3D graphics.

However, follow-up calls with Joystiq and Ripten suggest otherwise, as OnLive communications director Brian Jaquet said that OnLive doesn’t respond to rumors, and the company is definitely not shutting down its service:

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

If OnLive is truly was shutting down, the timing affects would impact a lot of vendors and other companies in the interim. Whether or not the entire staff was actually laid off seems to be another matter.

Most recently, the Ouya console announced a partnership with OnLive, and was set to feature the service’s cloud gaming content on their budget price, open-source Android console. OnLive also holds partnership deals with many companies on several platforms such Google TV, the Nexus 7, Sony’s mobile devices, plus iOS and Android device support.

Source: Mashable

McKinley Noble, Contributing Editor
McKinley Noble has been writing about video games for seven years as a blogger and journalist, with each job adding to his painstakingly alphabetized collection of retro gaming memorabilia. When not cracking jokes about the gaming industry, he's a talking encyclopedia when it comes to mixed martial arts and anything MMA related. Follow him on Twitter: @KenTheGreat1. Meet the rest of the crew.

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