OnLive Sold For Under $5 Million
The ambitious cloud gaming service OnLive has been sold for under $5 million. It was revealed in August that OnLive had to lay off it’s entire staff after it was revealed that it owed at least $18.7 million. This was on top of existing upcoming payments that the company had to pay as well. OnLive’s actual price ended up being $4.8 million.
If you’re not familiar with what OnLive is, it’s a streaming service that offers game at low prices at via a subscription. They had a big promotion for itself at last years Eurogamer Expo where consumers were offered a console for £1 if they signed up for the subscription fee. The promotion was a part of the companies launch in the UK. The company pledged that it would revolutionise the way we play games. It was available through Tablets, TV’s, PC’s, Macs and HDTV’s.
However, this was not the case. Due to a failing business model, the company had to liquidate it’s assets to pay back as much of the $18.7 million as they possible could. Instead of having to be declared Bankrupt, the company went through an assignment for the benefit of creditors where it was sold for almost nothing. Since it was sold intact, it’s made up roughly a quater of what it owed.
If you think about Sony’s purchase of Gaikai back in July for $380 million, it truly is a shocking piece of news. Gaikai offers a similar service that is competitive to what OnLive offers. And OnLive provided a strong library of content from personal experience with the service. OnLive were offering Batman Arkham City as one of it’s launch window games that launched at the same time as the PS3 and Xbox 360 versions.
OnLive is currently still going with trying a new business model but it’s still in pretty bad shape.
Do you use OnLive, Gaikai or any other streaming service? Let us know in the comments below.
George Sinclair is an editor for Analog Addiction, the home of the latest news, reviews and previews. You can follow George on Twitter and his blog on IGN. Be sure to follow the official Analog Addiction Twitter.