2012 Year in Review: Falling from cloud nine

Sections: Consoles, Consoles-Other, Features

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One of the most surprising stories came on August 17. On that day, chatter started to emerge about something very bad happening at OnLive. Employees were being laid off and OnLive’s future was believed to be in serious jeopardy. When it was all said and done, the company that appeared to have one of the most successful cloud gaming services in existence was days away from being completely shutdown.

OnLive’s assets were sold to a new company to help pay down the $30-$40 million OnLive owed to creditors. Lauder Partners, LLC ultimately became the new owners of OnLive. Through all the confusion, OnLive’s service has not shut down. It’s still selling and running games in the cloud, and is still providing access to Microsoft Office applications through its OnLive Desktop iOS and Android applications.

Naturally, everyone wanted to know how OnLive got into this situation. Some of the blame was put on former OnLive CEO Steve Perlman who allegedly continued to push OnLive’s offerings despite not really having the money to stay afloat. An extensive report from The Verge cited employees who complained about Perlman’s extreme micromanaging, questionable financial decisions and what appeared to be a superiority complex.

Perlman was eventually replaced as the CEO of OnLive shortly after the company was sold. Steve Perlman is no longer with OnLive.

Things have been relatively quiet at OnLive for months. It still posts somewhat frequently on Facebook, but its ability to repair its reputation is uncertain.

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