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Did OnLive Just Die?
Employees Claim Entire Staff Laid Off Today
by Karl Bode Friday 17-Aug-2012 tags: business · alternatives · gaming · bandwidth
Tipped by Zoder See Profile
Both Mashable and The Verge are reporting that broadband game streaming company OnLive is shutting down. Employees were informed today that the company is closing its doors, and that the entire staff is being let go. "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," says a laid off employee. Launched in June of 2010, OnLive allowed broadband users to stream games remotely using a $100 console, PC or tablet. E-mails from employees suggest the company could be rebuilt into something new, or could simply focus on selling off its streaming gaming patent portfolio.

Update: OnLive's director of corporate communications is denying that anything happened, so either they're clueless, lying, or the press is being punked:

We don’t respond to rumors but of course not.
The exciting news is that the first VIZIO Co-Stars (Google TV stream players) with the OnLive app built-in have just arrived in customer homes, and our second of three 'Indie Giveaway Weekends' is going on now.

Long time game developer Brian Fargo has tweeted that the firings are real.

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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Sounds like they are done

Employees will know if the company is firing them or not!
nonymous
Premium
join:2003-09-08
Glendale, AZ

Re: Sounds like they are done

Even if employees are let go does it really mean anything. In today's world there is no need for employees or very few. That is the way Wall Street thinks and investment groups.
Just increasing profits for the investors and better customer service if they are letting employees go.
Or just offshore all the employees.

edit: In this case alternative to bankruptcy. Let employees go and bring back a subset. If the economy was better the subset wouldn't go back.
Chubbysumo

join:2009-12-01
Superior, WI
Reviews:
·Charter

Re: Sounds like they are done

said by nonymous:

Even if employees are let go does it really mean anything. In today's world there is no need for employees or very few. That is the way Wall Street thinks and investment groups.
Just increasing profits for the investors and better customer service if they are letting employees go.
Or just offshore all the employees.

you cant offshore employees when the servers have to be a certian distance from you, which means they have to be close. I suspect its either false, or they were bought out and shut down due to pressure from the **AA's. if its the least bit disruptive to any market, the **AA's have something to say.
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
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Re: Sounds like they are done

Umm...the MPAA/RIAA don't have anything to do with video games, except maybe the music in them (but that's a very minor thing).

My guess is that any hot water OnLive got into was due to licensing issues with Microsoft, not any of their other publishers.

As for servers being a certain distance from you, OnLive employees don't necessarily have to have access to the consumer side of the service. Sure, there need to be testers, but thats a subset of the functionality of the employee group, and you can have a test server on-site (offshore) anyway.

ctceo
Premium
join:2001-04-26
South Bend, IN
Reviews:
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This is part of the capitalism crumble (sorta a bad dance title). Provided the systems are in place they should require minimum staff to operate. I'd like to see some numbers though which should be public information filed with the SEC. Anybody have access?
Calculata

join:2009-05-04

Service was trash anyway

That service was trash anyway. I just hope the employees knew before the ship went down and where able to secure another position.

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:20

Re: Service was trash anyway

I wouldn't say it was trash, and a lot of people did enjoy using it. I would just say that it was ahead of its time. The latency was actually tolerable for a lot of game types, and there were a few things they could have done in the future to work on reducing latency further. The major issue was the very poor video quality, but that too improves over time: h.265 would eventually drop the bandwidth requirements in half (enabling a big boost in quality), while ever-rising broadband speeds will continue to improve both the latency and quality.

I'd say they were five or so years too early. Their failure isn't an indication that cloud gaming isn't feasible, but more that the very large startup and operational costs of a cloud gaming provider were not yet sustainable in the present market. I think that their high costs forced them to rush their product to market long before it was ready, as they didn't achieve the level of image fidelity and low latency that was possible even with technology at the time of their launch; they focused more on the social aspects than the underlying technology, and suffered for it. Gaikai, recently bought by Sony, managed to do better latency and image quality, but had none of the social features.
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whfsdude
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Re: Service was trash anyway

said by Guspaz:

I'd say they were five or so years too early. Their failure isn't an indication that cloud gaming isn't feasible

The biggest issue with OnLive was that it couldn't get any EA games. So their largest publisher was THQ which wasn't enough.

If anything, it wasn't a technology failure as much as it was a licensing failure.

Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3

Re: Service was trash anyway

said by whfsdude:

The biggest issue with OnLive was that it couldn't get any EA games. So their largest publisher was THQ which wasn't enough.

Not exactly a loss really.

ArrayList
netbus developer
Premium
join:2005-03-19
Evanston, IL

Re: Service was trash anyway

agreed!

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

1 edit

Re: Sounds like they are done

said by KrK:

Sounds like they are done. Employees will know if the company is firing them or not!

ISPs will be happy, IF THIS IS TRUE, as this can cut down on all the high bandwidth use a service like OnLive causes.
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ArrayList
netbus developer
Premium
join:2005-03-19
Evanston, IL

Re: Sounds like they are done

I suppose if an ISP would rather not provide service, yes then they would want you to not use it. But that is not what an ISP is in the ISP business for. They are in it to provide the service. You make no damn sense and you know it. Stop trolling.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Sounds like they are done

That is not entirely true. Some here, like our friend you are responding to, believe that businesses are only there to take our money and actually providing a product or service is 2nd to that and is only needed if you wont voluntarily give it up with out.

michieru
Premium
join:2009-07-25
Miami, FL
ISPs would be out of a job if it wasn't for high bandwidth applications pushing the envelope of what can be delivered across networks.

battleop

join:2005-09-28
00000

Re: Sounds like they are done

Source?

michieru
Premium
join:2009-07-25
Miami, FL

Re: Sounds like they are done

Myself but I was really referring towards the history of the internet when I made that statement.

Thaler
Premium
join:2004-02-02
Los Angeles, CA
kudos:3
said by battleop:

Source?

Common sense? There wouldn't be a need for broadband if the entire internet was bbs terminal text.

Well no

@rr.com
ISPs aren't capable of emotion.

Their engineers are but aren't likely to notice or care.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Only in the USA where ISP's are happy when people can't use their services, because they know they don't have enough competition and choices for people to leave them if they treat them like trash.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5
Onlive has been sold and will stay in business:
»venturebeat.com/2012/08/17/confi···company/

OnLive will continue to operate its services during the transition and the new company is backed “by substantial funding,” said a spokeswoman for Steve Perlman, the chief executive of OnLive.

“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 company said in a statement. “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

No word yet on who bought them.
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KrK
Heavy Artillery For The Little Guy
Premium
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Tulsa, OK

Re: Sounds like they are done

Samsung, Apple, Google.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: Sounds like they are done

said by KrK:

Samsung, Apple, Google.

Maybe Sony or Nintendo.
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Sounds like they are done

I think Sony is out of the running. They bought Gaikai in July.

ArrayList
netbus developer
Premium
join:2005-03-19
Evanston, IL
yuck and uber-yuck

Maggs
Life is awesome
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Woodside, NY
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“by substantial funding,” said a spokeswoman for Steve Perlman, the chief executive of OnLive."

Substantial funding of Steve Perlman's Change in Control exit package. I wonder how golden his parachute is.
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mworks

join:2006-06-13
Faison, NC
Translation :
We had a lot of debt, company was too expensive to run so we closed the doors, let the debt default and formed a new company to use everything that was good about the old one without any losses.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: Sounds like they are done

said by mworks:

Translation :
We had a lot of debt, company was too expensive to run so we closed the doors, let the debt default and formed a new company to use everything that was good about the old one without any losses.

Latest info sounds like a lot of nefarious activity going on by CEO:
»www.theverge.com/2012/8/19/32530···y-filing
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Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5
Onlive bought by 1 person?
All employees fired to cut them out of stock ownership to make sale easier.
It is all about the patents.

»www.theverge.com/2012/8/18/32509···nt-users
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Sounds like they are done

So yes, they are done.

Sounds like a Vulture Capitalist at work here.

Did Romney buy them? :P

MikeD

@bhn.net
i had applied for them 3 months ago and today the new "company" called me.

ctceo
Premium
join:2001-04-26
South Bend, IN
SOLD! To the old man with all the makeup in the big chair at the head of the table.

Let's hope they can put some foundation here, some lipstick there, and a few earrings on the side and make it at least look pretty.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

3 edits
New owner identified: »venturebeat.com/2012/08/19/onliv···nvestor/

affiliate of Lauder Partners, an investment firm headed by Gary Lauder, is the first investor in the newly created OnLive.
»www.ted.com/speakers/gary_lauder.html
»www.lauderpartners.com/

Gary Lauder is one of the heirs of the multi-billion dollar Estée Lauder perfume fortune. »www.ft.com/cms/s/2/0099049a-0d51···434gHA1m

Who: Gary Lauder (b 1962), William’s younger brother. Managing partner of Lauder Partners, a venture capital firm based in Silicon Valley.

Rise to power: the only one of Estée’s grandchildren not to work for the family company, Gary has a BA in International Relations from the University of Pennsylvania, a BS in Economics from Wharton and an MBA from Stanford Graduate School of Business.

Out of the office: Gary co-created Aspen Institute’s Socrates Society with Laura, his wife. The society aims to bring together emerging leaders from various professions “to explore contemporary issues”.

--
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Chiyo
Save Me Konata-Chan
Premium
join:2003-02-20
Charlotte, NC
kudos:1

That sucks

I wonder if the employees had any suspicions? I'm not a hardcore gamer but it seemed like On Live was the "hot thing" for 5 minutes and then rapidly cooled off. The Vizio deal seems like a great opportunity to expand their reach but maybe too little too late?
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MovieLover76

join:2009-09-11
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Reviews:
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Re: That sucks

it was always due to fail, I think. I've played around with on live a few times on the PC and a gamepad and while the lag is acceptable on a fios connection for pretty much anything other than fps, the graphics are just plain bad, 1080p video titles are reduced to 720p and even at 720p they can't keep the PQ high enough games look like they are a previous generation console.

whfsdude
Premium
join:2003-04-05
Washington, DC

Re: That sucks

I didn't find the lag bad at all. In fact, I didn't even notice it. However, it was 11 ms to their data center for me (over cable).

If this is true, I will miss playing Homefront on Onlive.
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
·Verizon Online DSL
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I had good luck with OnLive over various cable connections, though the service lagged a bit more than I would have liked at first (they fixed this later...that or me being in Denver instead of cnetral Texas meant I was closer to their server network topology wise).

donedonedone

@comcast.net

Sounds about done to me

Another one bites the dust:

»venturebeat.com/2012/08/17/break···s-today/

»kotaku.com/5935767/onlive-filing···ts-place

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: Sounds about done to me

One of your links said an "unknown 3rd party" may have purchased them.
I'd laugh if it was Wal-marts. Cry if it was Itunes or Microsoft or EA.
robertg1234

join:2004-04-19
Palo Alto, CA

Re: Sounds about done to me

CEO Perlman used to co-own WebTV, and they were bought by Microsoft. He stayed at MS for a couple of years after that. That's where he got a chunk of change to start Moxi.

BF69
Premium
join:2004-07-28
Camden, TN
said by Snakeoil:

One of your links said an "unknown 3rd party" may have purchased them.
I'd laugh if it was Wal-marts. Cry if it was Itunes or Microsoft or EA.

EA is getting bought out themselves. They aren't buying Onlive.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: Sounds about done to me

DAng, wishes do come true. I wasn't aware EA was up for sale/maybe up for sale.
Thanks.

gamer22

@verizon.net

Cool, but not practical

The technical concept was good, but this really only works if networks and heavy compute is really-really cheap-> free. The game streamed a constant 5Mbps unicast and used a fair amount of cloud compute. Gamers run for a long time and most at prime time. Now combine that with requiring low latency and the latest games.

The business model didn't make sense.
dra6o0n

join:2011-08-15
Mississauga, ON
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Re: Cool, but not practical

If only they used that for a mmo right?
Streaming a mmo means the same thing as connecting to a mmo's server, the server determines who gets what in a mean to secure the game. This means no need to install, just use a live stream, no need to worry about lag or latency if you are internationally far away (video packets would still be fast enough I guess?) but there might be delay in controls...

Heck if Onlive where to cater to the many subscription based mmos, is able to offer 95% graphical sync (you know how the graphics blur), and brings in the big gun mmos from the east... Like Blade and Soul, ArcheAge, and such.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

darn

I enjoyed playing for free doing just the trial game time.
treyatl2006

join:2012-01-26
Atlanta, GA

Damn....

I know someone who worked for them... Sends message!
FSchmertz

join:2007-07-01
West Milford, NJ

Getting Laid Off

Prior to being rehired by new owners isn't really all that unusual.

It allows the new owners to implement their own policies and only hire who they think they really need.

kickass69

join:2002-06-03
Lake Hopatcong, NJ

Re: Getting Laid Off

On top of lower wages and benefits.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Plus that way you can wipe out vested employee's accrual, and raid stock ownership plans, etc

Vulture Capitalism at it's finest.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

09129800

join:2012-06-27
New York, NY

Good riddance!

I find everything about this concept repulsive - from the shitty video quality, to the lag, to the complete and utter control it gives the game publisher over my experience. The fact that you can't "own" what you play on the service, the fact that you can't use modifications, cheats, trainers... no customization at all.

An AWFUL, AWFUL idea and I hope it never catches on. Can you imagine if this service had gotten popular enough so that games were released exclusively to it? *shudder*

You can pry my gaming PC from my cold, dead hands.

See 6 replies to this post
floydb1982

join:2004-08-25
Kent, WA

Heard of it but never used it

I've heard of it but never used it because I had a Steam account with a lot of money invested into good quality high graphic downloaded games.

Madness
Like a flea circus at a dog show

join:2000-01-05
Quincy, MA
kudos:1

???

So, does this mean that the company is to be known as, "OffDead" from now on?

Cthen

join:2004-08-01
Detroit, MI
Reviews:
·Verizon Wireless..
·Comcast

Who?

"Who and what is this service?"
^
Which is about what 99% of the world is asking.

Sure we here know about it but, we aren't what this product is geared for and the ones it is geared for, they have no clue it even exists.

I mean really, did no one see this coming?
--
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Snakeoil
Ignore Button. The coward's feature.
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Mentor, OH
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Official: OnLive sold to 'newly-formed company,'

»www.theverge.com/2012/8/17/32505···tatement

quote:
After hours of rumors, the company has finally issued an official statement via email:

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.
As you can see, OnLive isn't disclosing the name of the new company nor the source of its "substantial funding," only that it's "newly-formed." Although many OnLive employees have been seen leaving the company's headquarters with boxes full of possessions, apparently "a large percentage" will be hired by this new company — though whether "large" can fairly be read as "a majority" isn't at all clear. OnLive also wouldn't confirm whether OnLive CEO Steve Perlman was a part of the new, mystery company.

So around it goes.
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Sukunai
Premium
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Reviews:
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Que chorus of 'I told ya so'

No doubt you can find someone saying "I told you so" about this.

Whether it is accurate remains to be seen.

There is no shortage of good ideas out there, that just don't get implemented properly.

I hate Steam as much as I like it. Ok maybe I don't hate it that much and maybe I don't like it that much and perhaps my main feeling is I just don't care either way. But you can sure find a lot of haters, and few likers for it.

So too likely with On Live. It likely is a good enough idea, but just too easy to heap on hate, and too hard to find anyone interested in praising it. I know every time I have tried to see some merit in it, it gets beaten up by the "I want to own my game" mob.

This regardless of how digital delivery out performs buying a scratchable physical copy every single time, even if you don't get permanent forever ownership of the ability to download. But considering how the lifespan of a person's ability to give a damn about a game (even a great one) is often barely a few months.

Case in point, most of my gamer friends will rave on about plenty of games, but next year odds are they have moved on months ago. Too many games are play once experiences any way.

I mean I am a wargamer, and most of my games have infinite replay, and then I realise, wargames as a category, is so small that most people don't even know what a real wargame actually is. No, it's not Call of Arcade Action, or Medal of Yet another shooter. But have you ever even heard of the award winning Panzer Corps?

The idea of Onlive is this, spend your money playing the game, not constantly spending your money on buying better and better computers. Every time you avoid buying a new computer (500 bucks to start), is 500 bucks spent on games. Hey 500 bucks lasts a long time at 15 bucks a month for game memberships eh.

You don't need to on something for the short span of time you will give a damn about it.

cpsycho

join:2008-06-03
HarperLand
Reviews:
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Re: Que chorus of 'I told ya so'

If you build a computer for $500 bucks a year then yeah it might be worth it. But I spend $700-$800 and a computer can possibly last me 5 years. Plus my computer does way more then just play video games.

So I most likely would buy around 10-15 games in those 5 years. Honestly their are not that many great games made every year. So I basically spend around $22 a month and guess what. I own everything.

Onlive almost had a death blow here. If you wanna spend money on this thing I would not say nothing bad about you. But if it does die next time that's it you lose everything. Me, I lose nothing.

Cthen

join:2004-08-01
Detroit, MI
Reviews:
·Verizon Wireless..
·Comcast

Re: Que chorus of 'I told ya so'

And that is this company's problem. Mostly the hardcore pc gamers know about this and we only make up a very small portion of the market.

The ones they need to market this product to just don't know it even exists. If they were to market it to the correct crowd they would definitely get the $300+ console owners to take a good look at their $100 price point.

Too bad it seems that they really don't want to succeed though.
--
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dra6o0n

join:2011-08-15
Mississauga, ON

Refunds?

Well the server will stay up, I wonder what will happen to my paid Homefront and Deus Ex Human Revolution?

BF69
Premium
join:2004-07-28
Camden, TN

ISP caps were going to kill this anyways.

My son tried a 30 day trial for $2 a while back. The service used 3 GB per hour. An hour a day using this would be 90 GB a month.
treyatl2006

join:2012-01-26
Atlanta, GA

Re: ISP caps were going to kill this anyways.

I dont think it was a bad service. Like someone said, its just before its time. Our broadband infrastructure is just too weak. And it mainly because the ISP have done a poor job at upgrading their infrastructure. Google made a compelling argument when showing off their 1 gbps fiber internet. At one point internet speeds were doubling every couple of years and the ISP kept up. 14kbps>>28kbps>>56>>128>>256>>512>>>1.5>>3 kbps>>5 or 6 kbps.... But the average download speed is 5 megs and it has been that way for under a decade. The upload speeds are even more pathetic.

So the people who did know about the service usually didnt have a great experience because their internet wasnt up to par.

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