80°
Submitted by Murpho 984d ago | news

OnLive owed $30 million to $40 million, was facing imminent shutdown

At the time of its insolvency last week, streaming game company OnLive was in far greater trouble than was publicly known.

The company owed $30 million to $40 million to various creditors and had little money to pay them. It had failed to find a buyer despite shopping itself around and was facing a complete shutdown of its services, said Joel Weinberg, CEO of Insolvency Services Group. (Industry, OnLive, OnLive)

Credit url: gamernode.com
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NYC_Gamer  +   984d ago
OnLive was bound to be a failure
Lovable  +   983d ago
Gameover man
Xperia_ion  +   983d ago
We got Gaikai.
Jazz4108  +   983d ago
Another failure and about to be sued by onlive for patenet infringement and the reason sony was able to buy so cheap. Its coming mark my words.
ConstipatedGorilla  +   983d ago
Dude are you new here? You can't talk bad about Sony, or you'll get hit by the disagree fairy.
dboyc310  +   983d ago
380 mil is cheap? Don't you think sony would do there research before purchasing? I highly doubt they will suffer. But what are the patent infringements though? I mean there could be more than one clouding service. Sony will be implementing gaikai differently than what onlive was doing. I'm curious to see if these patents are simple and stupid and just an act of jealousy of a failure of a company.
Soldierone  +   983d ago
OnLive can BARELY pay off their creditors and has maybe 20 people working there. They have absolutely no leverage at all, and you think they are going to go and sue a multi-billion dollar company for some extremely general patent?

Sony has a way out (Implementation and Remote-play) and WAY more money to hold out in court. it isn't worth the risk to OnLive. They would barely be able to hold up in court, and if they lost they'd have no money to cough up so the court won't even hear it.
kwyjibo  +   983d ago
OnLive can't really do much about patent infringement because Sony is Gaikai's parent. (Sony clearly overpaid though, given OnLive's dire finances)

Immersion could hit Sony over rumble, because none of Sony's patents could touch Immersion, because they did nothing else but rumble. OnLive has got an online service, a microconsole with a controller. Sony no doubt will have patents in that space with which they'll be able to hit back with, given Sony's presence in media and TV, I'm sure they've got their own streaming patents too.
nukeitall  +   983d ago
@Soldierone:

That is exactly the sort of company that would sue!

One desperate enough and also one that has assets to sell to others that will do it for them!

If OnLive can't do it, it is hard to believe Gaikai is in any better shape. Sony should have bought OnLive out of the two, at least they could have paid far less for more customers. A desperate company will sell for cheap!
BitbyDeath  +   983d ago
@kwyjibo,

Immersion already pulled that pin years ago which got resolved in 2007.

http://en.wikipedia.org/wik...
#3.1.6 (Edited 983d ago ) | Agree(1) | Disagree(0) | Report
JBSleek  +   983d ago
Gaikai is now first party which means that only people who have Sony ecosystem can use it and will likely lack third party games now or modern games at that.

Not a great option for variety gaming.
Xperia_ion  +   983d ago
"Not a great option for variety gaming"

You meant a variety of gamers who play on different platforms ?
Dlacy13g  +   983d ago
I am still trying to figure out how they got out of their debt via this legal loop hole? I mean they F'd a bunch of people including all the employees that got laid off. Now they get to continue on as a smaller company and just wash their hands of the previous debt? Am I missing something here cause I just don't see the justice in that.
Firelotus2  +   983d ago
I hate to say it, but that's America for you.
ABizzel1  +   983d ago
More than likely the company that bought them out is going to cover a portion of the debt, other factors such as the massive layoffs, potential pay cuts, smaller staff and lower operating cost will add up to pay the rest of the debt. Finally government loans will help keep the business from going under, as the government generally aids businesses out of financial crisis with vastly extended loans.

Now is that enough to pay back the millions owed, I don't know, but it's a start. If not then in a few years we'll see a bunch of OnLive lawsuits.
Soldierone  +   983d ago
An investor bought them, all that money is used to pay the creditors. Almost everyone from the company is gone, anyone still with the company was "re" hired by the new company.

They had 200 people, now they have maybe 20 people. Each person was making AT LEAST 30 thousand + a year, that alone is cutting at least 4 million off the budget. Like stated above, things will stack up. Since they company basically went under, then they have no worries about massive changes like this.
Dlacy13g  +   983d ago
Do you not find it odd that they found an investor that is willing to hire back (granted for no salary) the main guy "Perlman" who ran the company into the ground?

I mean instead of selling the company to any number of companies (MS, HP and Sony all made offers from what I understand) he holds out for 1 billion...runs the company debt through the roof, files for chapter ABC, fires everyone...and gets a deal done that keeps himself at the helm. You have to wonder how much he was paying himself leading up to this too. Just feels dirty...
Soldierone  +   983d ago
If I'm not mistaken he was fired too? The first "leaks" of it happening were from a person that got fired, but later someone else came to the table and said he was apologetic and was fired with the company?

If not then yeah it is dirty, but we see it all the time. Enron or whatever it was called, the major CEO's walked away with millions and millions of dollars and no worries in the world while the company crumbled under them. CEO's will always do this. Basically any "profit" a company makes goes into their pockets.
MAJ0R  +   983d ago
Well OnLive was a very risky investment, especially when the technology for streaming games efficiently isn't really there yet. There's much more of an incentive to buy the game instead.
CrimsonessCross  +   983d ago
Yes.

Once we have internet speeds up to par for it (and probably without data caps), a solid platform that won't get shut down or anything too unstable and everything else needed (the only two I can think up at the moment XD) that is when we'll be able to support these types of medium.

We're doing fine with digital and some people don't really even enjoy doing THAT as some games have DRM and stupid protection methods attached to them.
Darrius Cole  +   983d ago
Onlive didn't sound like something that could work.
deantak  +   983d ago
i wonder why OnLive didn't start in Korea.
wita  +   982d ago
Last I heard, OnLive sounded pretty confident it was going to give Steam a serious run for their money....

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