OnLive sold to newly-formed company

Staff laid off as cloud gaming service tries to stave off bankruptcy

It's been a dramatic weekend for cloud gaming service OnLive – it's been sold to an unnamed company "backed by substantial funding" in a bid to stave off bankruptcy.

OnLive is assuring customers that the transition to its new owners won't affect its service – a spokesperson stated that it will continue to run its OnLive game and OnLive Desktop services, with "no expected interruption."

That's scant consolation for the employees who've been laid off – "well over half" of the company's staff were fired, according to International Business Times.

According to Engadget, the new company plans to use OnLive's remaining assets, including the remaining staff, to create a "lean, profitable new start-up." It's a sobering reminder that tech pioneers don't always get to reap the benefits of their innovation. Sony – which recently purchased cloud gaming service Gaikai – will doubtless be watching developments with interest.

[via International Business Times and The Verge]