Last Friday's onslaught of conflicting reports regarding the health of cloud gaming service OnLive left a lot of questions about what, exactly, was going on over there. This morning, we have a bit more clarity on the situation, though the news isn't all particularly good.
Venture capital firm Lauder Partners, LLC has stepped in to back the company after it filed for a form of bankruptcy in California to protect itself from creditors. Lauder will fund the new version of OnLive, which will continue operating the company's service as per usual, albeit with a much reduced staff.
More than half of the company's employees--quoted at anywhere between 150 to 200 at the company's peak--have been let go from the company as of last week. Those that are remaining will be doing so at the same salary they earned prior to the changeover. Interestingly, the press release the company sent out speaks of a "reduced compensation" as part of the deal, which implies that they are making some kind of money off of the deal. CEO Steve Perlman, however, is apparently not among those receiving any compensation from the sale.
So, ultimately, it looks as though OnLive will continue on, albeit under somewhat differing circumstances. It's perhaps good to hear that the company didn't end up having to lay off its entire staff, but the increased scrutiny this whole situation brought to bear does make one wonder exactly how viable this company's business model even is. I don't expect this to be the last thing we hear about the situation.