From the first reports...
InXile CEO Brain Fargo also Tweeted that an employee from within OnLive had emailed him that the company was close to going out of business. Here’s the email:
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 else’s 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, including the titles that will remain on the service.
It has been an absolute pleasure working with you and I’m sure our path with cross again.
When asked for comment, OnLive’s Director of Corporate Communications told Forbes’ Jason Evangelho: “No, let me be clear. We are not going out of business.”