OnLive reportedly shutting down, new company forming in its wake (update: OnLive says 'of course not')

Brian Heater
B. Heater|08.17.12

Sponsored Links

OnLive reportedly shutting down, new company forming in its wake (update: OnLive says 'of course not')

Well, here's a bit of a shocker. After a strong showing at E3 and partnerships with companies like OUYA, gaming service OnLive is reportedly closing down, with an entire staff layoff resulting. At a glance, this sure feels a lot like the similar rise and fall of InstantAction, which was attempting to pull off something similar with cloud-based gaming. Polygon is reporting the story as relayed to the site by game developer Brian Fargo. We've reached out to the company and received a non-comment comment, "We don't respond to rumors and have no comment." Our OnLive contact also used the opportunity to plug its Google TV tie-ins and few giveaways -- so, for the moment at least, things seem to be moving along as usual.

Update: Joystiq has reached out for comment as well, getting a similar, yet decidedly more blunt response: "We don't respond to rumors, but of course not." Blunt response or no, we're sure this isn't the last we'll be hearing about this one.

Update 2: We reached out to OnLive again for clarification on whether the denial pertained to both the shutdown and layoff rumors. The response reads thusly: "I have no comment on the news other than to say the OnLive service is not shutting down. I'm sorry I cannot be more specific."

Update 3: Martyn Williams from IDG has reported there are employees leaving the OnLive offices with moving boxes.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Popular on Engadget