For a while now we've been covering OnLive, the cloud gaming service. From their laggy beginnings to more recent mobile successes, things seemed to be heading on a steady upward path for the company. However, this week, it appears things have plummeted faster than anyone could have predicted. Rumors were circling early in the week that OnLive had actually fired somewhere between 150-200 of their employees out of the blue. Staff were sending in emails to reporters and posting all over the social media outlets about what was happening inside the company. Brian Jaquet, a company spokesperson, even released a few statements saying that the company "is not going out of business" and we shouldn't have anything to worry about. Perhaps the mass firing was a mistake by some crazy computer bug that was mad about the ending in Mass Effect 3 and just had to take it out on gaming developers.
What happened later in the week? Well, OnLive has gone on record to say that not only did they fire 200 employees, but the company has filed bankruptcy protection and been acquired by a newly-formed company, but told us to be assured that all systems are still go. Usually, all of those things lead to signs of disaster and people should be running for the exits. OnLive seems to think all of this could be a good thing. They said,
We can now confirm that the assets of OnLive, Inc. have been acquired into a newly-formed company and is backed by substantial funding, and which will continue to operate the OnLive Game and Desktop services, as well as support all of OnLive's apps and devices, as well as game, productivity and enterprise partnerships. The new company is hiring a large percentage of OnLive, Inc.'s staff across all departments and plans to continue to hire substantially more people, including additional OnLive employees. All previously announced products and services, including those in the works, will continue and there is no expected interruption of any OnLive services.
We apologize that we were unable to comment on this transaction until it completed, and were limited to reporting on news related to OnLive's businesses. Now that the transaction is complete, we are able to make this statement.
So what's going on now? Where does this actually leave OnLive? We've been keeping tabs on the happenings and things have been developing all week long. Fortunately for you, our loyal reader, we have the completely updated story, all in one place, after the break.