Reports are coming in that streaming video game service OnLive is having serious financial trouble. According to reports, the cloud-based gaming company is preparing to file for some form of bankruptcy according to an inside source. OnLive is said to be filing for a bankruptcy-like process that is governed by the state of California.
The particular form of bankruptcy that the company said in the filing is called Assignment for the Benefit of Creditors, otherwise known as ABC in the state of California. This offers the company some protection from creditors. Company CEO Steve Perlman also reportedly told employees that the company as it exists now would cease to exist and no one would be employed by OnLive.
The Impact on Employees and the Gaming Community
Some workers would reportedly be hired by the company that comes out of the remains of OnLive. This transition, however, is likely to be fraught with challenges. Employees are facing uncertainty about their future, and the gaming community is left wondering what will happen to their favorite cloud gaming service. The sudden announcement has left many gamers scrambling for alternatives, and the industry is closely watching how this situation unfolds.
I can’t say that this is much of a surprise to me. OnLive has faced numerous challenges since its inception, including stiff competition from other gaming platforms and the high costs associated with maintaining a cloud-based service. Despite its innovative approach to gaming, OnLive struggled to gain a substantial user base and generate sustainable revenue.
Potential Buyers and Future Prospects
Other reports indicate that service has officially shut down while yet more reports indicate that a third-party is purchasing OnLive. This potential acquisition could breathe new life into the platform, but it also raises questions about the direction the new owners will take. Will they continue to focus on cloud gaming, or will they pivot to a different business model?
The concept of cloud gaming itself is still evolving, and OnLive’s struggles highlight the difficulties in this space. Companies like Google Stadia and NVIDIA GeForce Now have also faced their own set of challenges, from technical issues to market adoption. However, the interest in cloud gaming remains strong, and advancements in technology could eventually make it a more viable option for gamers worldwide.
In the meantime, OnLive’s situation serves as a cautionary tale for other companies in the tech industry. It underscores the importance of financial stability, strategic planning, and the ability to adapt to changing market conditions. As the gaming industry continues to grow and evolve, companies must be prepared to navigate these complexities to succeed.
via Kotaku
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