According to this Polygon report, word on the street is that the cloud-based gaming service OnLive is closing down and its entire staff has been laid off today. The report is based on an anonymous email forwarded to the publication by a former employee. According to that e-mail, OnLive will no longer exist as a company as of today, but a new entity will be formed in its place. Veteran video game developer Brian Fargo also made public comments echoing the same bad news, according to the report.
"I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist," reads an email forwarded to Polygon. "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."
When asked for comment, an OnLive representative offered the standard response:
"We don't respond to rumors and have no comment."
A source close to the situation who wishes to remain anonymous has confirmed with us that the Polygon report is true. We'll have more on this story shortly.