Update: OnLive Hit With Bankruptcy, Mass Layoffs, and is Likely Closing Down

OnLive, a company with the goal of taking high-end gaming to the cloud and then making it accessible to all devices via clients (think Battlefield 3 at the highest settings on a MacBook Air), is in hot water today as their employees report that they have been fired, and as the corporate team is reportedly shopping its intellectual property around to the highest bidder.

The company had recently tried expanding in to the virtualization category, with the ability to run Windows remotely and access it via a client. It was similar to how their gaming service worked, and genereted interest and opened a potential profit center outside the gaming market. However, the company lost its financial battle, and is closing the doors.

Sad, considering that the technology OnLive possessed was both impressive and useful – that’s not something that can be said about every Silicon Valley startup.

Update: While it isn’t looking good for the guys over at OnLive, it does seem as if the original reports were hyperbolic: only 50% of their workforce is being let go, though that number will likely go up. OnLive has reportedly been bought out by an unnamed company, and it seems as if this anonymous corporation is mostly interested in OnLive’s technology, and not so much the talent.

Update 2: OnLive has been sold to a newly-formed company, most employees were laid off, those remaining may or may not get a job offer soon, and OnLive’s services will continue.

[The Verge]

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