OnLive Gaming Service Struggling but Surviving

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OnLive brings tablet and smartphone users access to console games and desktop software by streaming them from remote servers. The company behind it just went through a major re-organization, but all features are still available.

According to information leaking out of the company, it made a big bet that it would become popular by locking itself into contracts for server time. Unfortunately for OnLive, it didn’t catch on the way executives had hoped, and paying rental fees for servers it didn’t need was an unacceptable drain.

Although the company hasn’t said so, the root of this problem has to be OnLive’s inability to release a version of its service for the iPad and iPhone. It’s possible this is an issue it may never surmount, as Apple specifically blocks apps that can run other software from appearing in the iTunes store.

That meant that the service was restricted to just Android devices, and that’s a small percentage of the tablet market.

OnLive

Major Re-organization

To solve its financial problems, OnLive has sold all its assets to another company — a newly-created company that isn’t locked into the old one’s contracts.

The management team from the previous version has moved to the new one, but not all the employees are.

An official statement from the company said:

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.

Unconfirmed reports indicate that the percantge of retained employees could be as low as 20%, and they have lost any stock options, as these were for the previous company, which is now defunct.

Don’t miss our review of OnLive Desktop, as well as the gaming service.

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