Cloud Gaming Service Sold for NothingAdded: Wednesday, October 17th, 2012
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The cloud-based game service OnLive was recently sold for less than $5 million, which was recognized as one of the most embarrassing industry failures of 2012. The deal caused many of the company’s employees losing their jobs, with the investors writing off their stakes. The sale was completed almost three months ago, but for some reason was kept secret.
According to the industry reports, the experts had previously estimated OnLive’s value at as much as $1.8 billion. Indeed, the business was very promising, especially considering all that cloud-based development in the technology market. In the meantime, the company’s rival Gaikai was acquired by Sony for $380 million three months ago. Unfortunately, the efforts of the company to get a better price backfired.
According to the insolvency experts from Insolvency Services Group who handled the sale, in the event that the sale hadn’t been completed, the company wouldn’t have had enough money to cover the huge costs of preserving and marketing OnLive’s patents and other IP.
The cloud-based video gaming service allowed the users to play premium games online without owning a console. The technology in question has been regarded as an innovative approach that would replace dedicated games devices. Unfortunately, the service didn’t get enough users: although OnLive claimed it had 1.5 million active users at the moment, the independent reports found out that only around 1,600 subscribers were using the service simultaneously. OnLive company ended up with the debts of $18.8 million.
The buyer, Lauder Partners, seems to be interested in OnLive’s patents that are worth hundreds of millions of dollars. In the meantime, the employees have been deprived of their rights to stock in the company. The investors who had spent tens of millions of dollars on a stake in the business also suffered: they would only be compensated only if the funds were left over after paying the debts. However, this is unlikely to ever happen, the experts have to admit.
The list of OnLive’s shareholders includes AT&T, BT, HTC, and Time Warner. The buyer of the company, Lauder Partners, is still offering the service across the United States, the United Kingdom and Belgium.
October 17th,2012Posted by:
Wednesday, October 17th, 2012
|posted by (2012-10-17 23:36:59)|
|I was a fully signed up member and user, like most i got bored with the outdated games and stupid costs related to so called new or popular titles, even worse was when you 'bought' a title and then were continually bugged by only have limited access to the bought title and encouraged to part with more dosh to unlock the rest, no one killed this more than corporate greed, great idea, great platform, people trying to make as much money as possible without improving service is the knife in the back. I was a member over 6 months in that time users trebbled and so did lag, primetime was a waste of time ven trying, if they had even tackled this in anyway it would have been worth it, when you work 9-5 your gaming time if your lucky is between 6pm and 11pm, this is when lag made gaming impossible, 3am service was amazing and so was the sleep needed to work|
|posted by (2012-10-18 03:48:16)|
|Right now loads of long term users are continually pm'ing trying to sell their accounts and accumulated games access and options, each time you get a pm the price is dropping, 6 months back people were asking for £400+ for a huge account with hundreds of games to access and now most are asking for any sensible offers, as they put it|
|posted by (2012-10-18 07:49:45)|
|And this is exactly why Digital only Distribution will never become a reality. When this company eventually folds, "Poof" every cent that you paid is gone.|
|Greed will out in the end loss, unless your in the senate|
Where'd that Dog go?
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