The Verge is reporting that OnLive, the popular cloud-hosted gaming service, has shut its doors. This is sad news for all of the upcoming Android gaming devices that were going to support the service, such as Ouya and Vizio’s Co-Star devices.
As of the time of this posting, the official website mentions nothing of this news but since there are no employees to update the website, this isn’t exactly surprising. I’m sure the owners are busy with more important matters.
The Verge discovered that OnLive could be closing down when veteran video game developer Brian Fargo told them he received emails from former employees warning of the company’s demise. According to emails, the company will no longer exist as of today.
So this begs the question, is cloud gaming even feasible? OnLive had a pretty nice system that nobody else has really ever came close to emulating. If such a system can’t be successful, what can?
UPDATE: VentureBeat is reporting that OnLive is not going out of business but might be going through extensive layoffs that ex employees are interpreting as the company going out of business. While it’s still not clear what’s exactly going on, something is going on!
UPDATE 2: Kotaku is reporting that OnLive is filing for bankruptcy and a new company will take its place.