It’s been quite the weekend for OnLive. The pioneering cloud game streaming service has faced huge debts, internal turmoil and has been forced to up-end itself to accept a buyout. Worse still, now HTC’s feeling the brunt of it. Just what’s going on?
After word emerged late on Friday, and following OnLive’s initial hesitance to comment on rumour, it’s been confirmed that the cloud-based games company has buckled and been bought out by an unnamed company.
The whole thing’s a bit fishy. From reports and insider knowledge, it’s possible to build a worrying company profile from OnLive. The speculation suggests that the company turned down multiple buyout offers – including ones from Sony and Microsoft – until eventually it couldn’t continue.
This buyout has meant that OnLive is able to continue, having wiped all its debts off the slate, but it also means that a large portion of the company’s employees have or will be shown the door.
So where does HTC come in? Well, the mobile giant invested $40 million (£25 million) in OnLive last year – an investment it now has to chalk up as a loss. That’s a huge shame, as the partnership was supposed to help HTC win the war on mobile Android gaming.
Alas, nothing really came from that huge wedge of cash, and now HTC’s back to square one. Maybe Sony’s new Playstation Mobile plans will fill the gap?