OnLive is a cloud gaming company that was once estimated to be worth $1.8 billion but has been burdened by massive amounts of debt. Sony Computer Entertainment has begun to buy different assets of the company for $4.8 million, including U.S. and international patents for cloud gaming services. OnLive will officially close its doors at the end of this month.
OnLive says that its gaming services will continue to be offered until the end of the month, but new subscriptions and renewals will not be processed, and anyone who was charged for these after March 28 with be refunded their money. This purchase comes at a time when Sony is recovering from its own gaming losses, and signifies a push to advance their own gaming technology.
The strategic purchase of OnLive gives Sony’s gamer’s great opportunities as well as giving Sony’s cloud portfolio a boost. OnLive was a leader in the field of online, cloud-based gaming, and had investors like Warner Bros, AT&T, and HTC. Despite all of this, other companies have jumped onboard to offer games that stick better than OnLive’s and have been successful. OnLive was started bac in 2007 as one of the most ambitious gaming startups Silicon Valley had ever seen, but they did not receive as large of a customer base as they had hoped and quickly lost steam.
Sony now holds a lot of cloud gamin intellectual property, and has used some of it to launch their own gaming platforms. In 2012, they bought the Gaikai streaming service for $380 million to help launch their PlayStation Now cloud game service.