After OnLive: Here’s why Nvidia believes cloud gaming is just getting started (interview)

After cloud gaming leader OnLive ran out of money in August, the future of cloud gaming became, er, cloudy. Rival cloud gaming service Gaikai had sold itself to Sony for $380 million, but OnLive’s failure to gain enough consumers to offset the costs of its cloud infrastructure raised questions about whether cloud technology was economical for games. Cloud gaming let a user play a high-end game on a low-end PC simply by logging into OnLive, which executed games in web-connected data centers that computed the game and sent images to the user’s machine in real time. OnLive launched in 2010, but too few subscribers materialized. Surrounded by free-to-play games, OnLive tried to sell consumers on instant access to the cloud and the capability to log in from any machine.

On what just happened with OnLive

For game-streaming service OnLive, this looks like a pretty employee friendly result, compared to what some people have speculated. The company simply ran out of options and couldn’t find a new investor or a buyer who would take on the company outside of ABC (assignment for the benefit of creditors).