Last week the gaming industry received news that cloud gaming service, OnLive, fired all of its employees and was bought out by a mysterious investor. Today we know exactly what happened to OnLive and the struggles they faced leading up to their dramatic sale.
OnLive was apparently facing huge financial troubles to the point where they had to consider declaring bankruptcy. The Wall Street Journal reports OnLive chose to use Assignment for the Benefit of Creditors (ABC), which is an alternative process to bankruptcy that allows companies to sell off their assets quickly.
It was then revealed that Gary Lauder of Laudner Partners was the one who bought up all of OnLive’s assets for an undisclosed amount of money. What this means is that OnLive’s service will continue without interruption. As of the writing of this article, OnLive’s services are still fully functional and customer’s games are still working. It remains to be seen how OnLive will rebirth itself and avoid falling into bankruptcy again.
Why did OnLive fail? It was simply ahead of its time. Continue reading “OnLive: a company and service ahead of its time”
