"Newly-Formed Company" Takes The Reins
Breaking news: all is not well at OnLive. Following confirmed rumours of massive layoffs, the cloud gaming company has been bought out by a "newly formed venture" - with a promise that their service will continue.
Here's what we know so far.
inXile's Brian Fargo started the ball rolling by tweeting an alleged email from an OnLive employee, which stated 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."
Despite putting on a brave face, OnLive's bleak situation was summarily corroborated by sources from Kotaku, Engadget and GamePolitics, with reports claiming that a company meeting heralded the dismissal of over 50% of the workforce without severance pay. Some reports even suggested that OnLive were desperately searching for an alternative to bankruptcy.
The latest news comes courtesy of The Verge, to whom OnLive issued a statement confirming both the layoffs and a buyout by "a newly-formed company," who will hopefully hire back many of the ex-employees.
"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."
We'll doubtlessly learn more over the next few days, and wish those affected a speedy return to the workplace.