OnLive Closing Down? [UPDATED]

August 17, 2012

A series of tweets recently appeared on Brian Fargo’s (inXile Entertainment) Twitter which suggest that the online video game service, OnLive, will be closing down and its employees are to be laid off. Read the most notable tweets from Fargo below, and check back for more shortly.

“Just received an email that OnLive is closed as of today!”

“Their employees are sending out emails that #OnLive will be closed by the end of the day. ”

“Apparently a new company will be formed but everyone is losing their job. Don’t know what that means. “

The most recent tweet from Fargo featured below appears to be a quote from an employee of OnLive confirming the news.

“I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist. Unfortunately, my job and everyone was included. A new company will be formed and the management of the company will be in contact with you about the current initiatives in place.”

There is yet to be any official confirmation from OnLive about the closure. Stay tuned, more news will be available soon.

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UPDATE 1: Kotaku reports that they have heard from a source inside OnLive that the company held an urgent meeting this morning where CEO Steve Perlman said that OnLive would be filing for ABC bankruptcy in the state of California. The source also said that the OnLive staff would indeed be laid off and the ‘company as it stands now would cease to exist.’

An official statement from OnLive is still yet to surface.

UPDATE 2: Joystiq have reached out to OnLive directly regarding the rumors and heard from Brian Jaquet (Director of Corporate Communications), who told them “We don’t respond to rumors, but of course not.”

Also, Kotaku have now amended their report that claimed OnLive had filed for bankruptcy by saying:

This story originally indicated that OnLive had filed for “bankruptcy,” which carries certain legal definitions. We’ve seen received clarification that OnLive filed for something similar, but technically different.

Kotaku now reports that OnLive has filed for an ‘alternative to bankruptcy called an Assignment for the Benefit of Creditors, or ABC, in the state of California – a status that affords financially troubled companies a level of protection from creditors.

UPDATE 3: Martyn Williams, a senior correspondent for IDG News is claiming over Twitter to have seen ‘three people walk out of OnLive with leaving boxes.’

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