This past Friday, rumors started to swirl that OnLive, the cloud gaming company that allows you to stream and play full console and PC titles right over the air, was heading for a major transition. It began as a full-blown doom and gloom scenario where the entire OnLive staff had been fired, OnLive as a company would no longer exist, and their streaming services would be shut down by the end of the day.

As it turned out, that wasn’t quite what happened. The story changed several times throughout the day, and what little OnLive gave in response to questions about the matter only added to the confusion. Now it seems the dust has settled, and while the company itself has gone through a radical change, the OnLive services as you know them should continue on as usual.

OnLive finally issued an official statement on the matter Sunday detailing the status of the company. All of OnLives assets (which include intellectual property, technology, patents, trademarks, and more) have in fact been sold to a newly formed company. They will continue to operate under the OnLive name, all current services will operate as normal, and all planned new products and services will still be announced as planned. From the user side of things, you shouldn’t notice any changes at all.

Unfortunately, a stipulation of the deal meant that neither the company shares or staff can transfer with the sale. That means everyone was indeed laid off on Friday, though OnLive says “almost half” of them were offered positions at the new company at their previous salaries. Those who weren’t rehired may be offered consulting work, and there’s the possibility that they may be rehired down the road after the new company secures additional funding.

So after a tumultuous couple of days, it looks like OnLive will continue on as usual from a functional standpoint. Mass layoffs are never a good thing, but hopefully this change will mean OnLive can continue to grow and improve, and maybe someday we’ll actually get that incredible looking iOS client (though don’t hold your breath).

[Via Kotaku]

  • Kafu

    OnLive reported that was serving 1,600 users... Probably they will fail again.

  • elia

    I wan this app so bad in my iPhone /:((( please give it us!!!

    • Tim Dyer

      I have OnLive on my Asus Transformer...its not that great. There are only a few games support touch pad controls, it is cool as kind of a tech demo though. I have the OnLive controller and that does add access to more games but it still isn't there yet. However using it on my PC is great, but it all comes down to content. They just don't have a huge library of games, and being in financial trouble might limit what games they can get in the future.

  • Adams Immersive

    I’m not a customer—yet—but I’m rooting for them! After grave doubts, I have come to see the potential. I’d love to have this on my iPhone, sent to TV via HDMI/AirPlay, with a Bluetooth gamepad. (If the iPad version ever appears, that will be close... but iPhone is more portable!)

  • http://www.gamegent.com/ Game Gent

    It would be a nice surprise if the OnLive app makes it on the iPad, but I doubt it since their is probably a lot of concern about it cutting into the AppStore profits. I know if I had access to high end PC games on my iPad, I wouldn't buy as many apps. I'd be to busy playing Batman: Arkham City...

  • Noah

    Does OnLive work with World of Warcraft yet? Let me know when it does and I'll give them money.

  • JJE McManus

    Why does this story sound like nothing more than firing everybody then hiring them back at lower pay? Before Friday there were stories that the CEO was more than a bit of an ass to work for. Doesn't this confirm that? Willing to bet that the suits in management slid into their new digs no problems while everyone else was told to pack it in, apply for unemployment and kiss any equity they thought they had in the company goodbye.
    Odds are we'll never see OnLive work but even if they do squeeze something out I shall not be taking part of any of their "service".

    • Benjamin Rodriguez

      Exactly my thoughts, I've heard of companies that actually do that. They fire all the people near the top of the ladder, then have them all reapply for the same jobs just with less openings then before. Ex: 3 CEO's fired. 2 CEO positions open, with less pay. See who really wants the job.

  • obamakilledusa

    twerwer

  • obamakilledusa

    When a powerful computer with cable modem occasionally struggles to display a youtube video, you realize that the onlive concept is hopeless.

  • NeonVoidJP

    Let's face it iOS users are never going to see it!! Lol

    • elia

      Then people lets focus in gaikai and forget it about onlive

      • http://www.facebook.com/brandon.wineinger.1 Brandon Wineinger

        I agree forget about OnLive and root for Gaikai! Seeing how Gaikai is bought by Sony I expect we may see real results. And not to mention though Gaikai has only demos at the moment they are offering more "current" and in demand titles.

  • https://me.yahoo.com/rekzkarz#a0df5 REkzkaRZ

    Wow, I'm disappointed by the responses here.  
    1/2 of the staff were laid off *with no severance pay* and all people whine about is "I want Onlive on my iPhone/iPad"?!?  Some things are bigger than an app you can play with, like people's lives!!I can't confirm JJEMcManus' comment that the CEO was jerky, but I can say that firing everyone (& later re-hiring 1/2 the employees) with no notice & no backpay is pretty low.  Later, when we find out what the deal was & how much exec money traded hands, I have a feeling that the deal will sound even worse.So before blindly going on and on about how badly you want the app (I wanted it too, but now am uncertain b/c of the 'people factors'), maybe consider the cost to people..?

  • Goose

    I think it's more likely that this method of delivering content is sitting very badly with publishers and providers (like apple), making it difficult for a company such as this to source funding. So you cut your costs down so you can try again to achieve your goal. I've seen heaps of interviews and presentations by the onlive dude, and all he wants is to provide his service so that people can play games. The guy literally reinvented the radio and broke physics to reduce latency specifically for gaming. Wish I had that link to his DIDO speech, that was awesome.