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OnLive denies closure rumor as massive round of layoffs occur

Friday, 17th August 2012 20:26 GMT By Stephany Nunneley

OnLive’s the recipient of the latest rumor du jour, as an email stating it’s closing down has been sent to Polygon and a high profile developer; however, VG247 understands that a large round of layoffs are happening, with only key, upper management positions remaining unaffected.

A supposed, anonymous, former-OnLive employee emailed Polygon, stating that the firm would be closed down today, and that it would resurface as a “new company.”

The email was also sent to Wasteland 2 lead Brian Fargo, first broken by Mashable, who posted it on Twitter:

“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.”

Fargo noted he received a “recall” notice a few minutes after the email from the supposed former employee landed in his inbox.

The email sent to Polygon stated, basically the same thing.

When asked for a response by Polygon on the news, a representative for the firm said: “We don’t respond to rumors and have no comment.”

OnLive’s director of corporate communications, Brian Jaquet, added: “We don’t respond to rumors, but of course not. I have no comment on the news other than to say the OnLive service is not shutting down.”

When pressed on the matter by Forbes, Jaquet said: “No, let me be clear. We are not going out of business.”

However, GameFront has been told by a reliable source at OnLive that a massive round of layoffs have occurred at the firm, with only key executive and management positions remaining unaffected.

Whether there was indeed a massive round of layoffs occurring, Jaquet replied to Polygon: I’m sorry I cannot be more specific.”

Meanwhile, a source close to Kotaku has told the site than a meeting was held this morning headed by CEO Steve Perlman who told employees the firm had filed for ABC bankruptcy (basically Chapter 7) in the state of California. What this filing means is “the liquidation of an individual’s non-exempt assets to settle debts with creditors.”

Perlman said that the company “would cease to exist and that no one would be employed by OnLive,” while a “subset of employees” would be brought back into the company which would formed from its remains.

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27 Comments

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  1. LuLshuck

    lulwut

    #1 2 years ago
  2. Ercarret

    IT’S THE END OF THE WORLD AS WE KNOW IT!

    Or not.

    #2 2 years ago
  3. Namdead

    What is going on with OnLive? This is just nuts.

    #3 2 years ago
  4. Sylrissa

    Onlive never appealed to me anyways, being with a limited speed and downloads interest where I live, on top of the fact that I prefer to own my games physically, though I’ve come to be okay with buying direct from dev’s sites, or from places like GOG, and to a lesser extent steam.

    #4 2 years ago
  5. Phoenixblight

    Its what happens when you don’t have investors like EA< and Dell like Galkai did.

    Onlive wasn't going to get anywhere without support from the publishers or devs which in turn leaves little to no support from the consumer.

    #5 2 years ago
  6. Ercarret

    Huh, seems to be more serious than I first thought. Gamasutra reports that everyone at the company has been laid off and Kotaku says they’re filing for bancrupcty. Seems strange to me. They haven’t had it rough, have they? I haven’t heard anything like that, anyway. I thought their future looked pretty bright.

    #6 2 years ago
  7. Stephany Nunneley

    More and more sources coming out of the woodwork – story has been updated.

    #7 2 years ago
  8. Ercarret

    What does “ABC bancruptcy/Chapter 7″ mean?

    #8 2 years ago
  9. Ireland Michael

    Cloud gaming. It’s the future!

    #9 2 years ago
  10. Stephany Nunneley

    @8 “the liquidation of an individual’s non-exempt assets to settle debts with creditors.”

    #10 2 years ago
  11. ejams

    If OnLive were to shutter, what would happen to all of the people who bought games/passes or whatever on the service? Would they just get the shaft too?

    #11 2 years ago
  12. freedoms_stain

    Naturally when a company hits the shit pan it’s highly logical to sack everyone except the upper management.

    #12 2 years ago
  13. Ireland Michael

    @11 Yup, basically.

    #13 2 years ago
  14. OlderGamer

    That is why I am worried about where I buy my digital games. I don’t mind a pay as I play type model, but to pay someone for something I could own somewhere else, it is hard to swallow.

    #14 2 years ago
  15. Phoenixblight

    @11

    Yep thats exactly it. You don’t own the games you bought from the service. You were just leasing it for 3 years.

    #15 2 years ago
  16. Ireland Michael

    @14 Dude, you’re the one who keeps touting this stuff as the way of the future.

    If this is true, wow… Wasn’t a very long future. I know the bubble worth burst on this crap eventually, but I didn’t think it would be *this* soon.

    @15 Or as long as the service was going, as long as people kept playing them. Guess that won’t be an issue much longer…

    #16 2 years ago
  17. OlderGamer

    Cloud is the future. But today is today. The future isn’t here yet. I used OnLive, but I never bought anything from them. I use Steam for that. Hence what I said about being careful of where I bought games.

    OnLives bizz model was flawed, and I have said so often.

    #17 2 years ago
  18. Ireland Michael

    @17 Then how is it ever possibly going to be the future?

    #18 2 years ago
  19. Dragon246

    @14,
    Doesnt steam work like that too?
    Digital buying is easy,although cloud gaming would take a few more years to establish in some parts of us and europe, and probably decades for reaching the worldwide coverage on site gaming enjoys.

    #19 2 years ago
  20. OlderGamer

    What was the first Online video game console Mike?

    Hint: it wasn’t Xbx, PS2 or Dreamcast.

    Sometimes ideas fail, and are reborn into newer fresher better forms.

    #20 2 years ago
  21. Stephany Nunneley

    Jaquet has told Forbes: “No, let me be clear. We are not going out of business.”

    Post has been updated… again.

    #21 2 years ago
  22. OlderGamer

    A hella restructure then.

    #22 2 years ago
  23. DSB

    Well yeah, that’s the American system.

    Chapter 7 allows you to erase your debts and start over, but obviously, if you actually need to do that, then your business is still in deep trouble, and there aren’t a lot of investors who are going to trust in you after that.

    #23 2 years ago
  24. KrazyKraut

    @23
    and after starting again the CEOs changing the name ofc….maybe it will be called “LiveOn” (omfg omfg hahahhahahah)

    #24 2 years ago
  25. Dragon246

    http://www.ign.com/articles/2012/08/17/onlive-possibly-being-closed-by-end-of-day
    OnLive acquired.

    #25 2 years ago
  26. Goffee

    Is the new company called ‘Live On’ by any chance?

    #26 2 years ago
  27. roadkill

    @5 “Its what happens when you don’t have investors like EA< and Dell like Galkai did." What is "EA<"?

    As for what is happening.. It was pretty much common sense that these idiots would fail. Especially when you sell games that are only available for a limited amount of time. With Steam and Origin when you buy a game it is yours forever. And if these services will ever fail they will release patches that will allows you to play the games w/o being connected to the internetz. Also there's the problem of what you play on. And OnLive was an online platform. Once that doesn't exist anymore you can't play anymore. But with your own PC.. well, your own PC will never simply evaporate.

    #27 2 years ago