After only two years and two months, Onlive, the cloud gaming console developer, has laid off its entire workforce and shut its doors, filing for an assignments for the benefit of creditors in California, which would give them some protection from creditors. However, the service will continue in some form so gamers who bought the console can still continue to play the games they purchased and a new team will be formed in the future to determine what will be done with the service in the future. The end of Onlive was confirmed in an e-mail by Brian Fargo, CEO of Inxile Entertainment, which stated:
“I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist. Unfortunately, my job and everyone else’s was included. A new company will be formed and the management of the company will be in contact with you about the current initiatives in place, including the titles that will remain on the service.
It has been an absolute pleasure working with you and I’m sure our path with cross again.”
However, when Onlive was contacted by Kotaku for comment, they made the following comment (which failed to admit to comments made by an onlive representative earlier today which confirmed the layoffs):
“We don’t respond to rumors and have no comment.
The exciting news is 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).”
Onlive was originally announced at GDC 2009 conference but didn’t officially launch until June 17th, 2010. The service was exclusively cloud gaming and requiews a minimum connection of 2 Mbit/s and a recommended 5 Mbit/s or faster to run the service. While there was a physical console, Onlive was also available as a downloadable program for Macs, PCs, tablets, and Android powered smartphones. Please share your thoughts on this development in the comments below and keep following Blistered Thumbs for all the latest gaming news.