OnLive, a US-based games streaming service backed by smartphone manufacturer HTC, phone operator AT&T, entertainment company Warner Brothers, software company Autodesk and phone operators BT and Belgacom, is shutting down, Ars Technica has reported.
Founded in 2007, OnLive developed a pay-per-game and subscription streaming service that enabled users to play games remotely from a high-performance, centralised server infrastructure, but the technology suffered from slow connections and image quality issues.
The company first encountered problems in August 2012, when it restructured by selling its assets to a new company of the same name – wiping out its shareholders and firing all staff in the process, letting go founder and CEO Steve Perlman later the same month.
OnLive will switch off its servers on April 30, 2015 and sell its patent portfolio to electronics company Sony Computer Entertainment America.
Users who opted for a new hybrid streaming and downloadable game plan launched last year will be able to continue playing their games through gaming company Valve’s platform Steam but all other users will lose access to their games.
HTC invested $40m in OnLive in 2011, the year after telecommunications network operators BT and Belgacom each invested $30m in return for a 2.6% stake.
AT&T, Warner Brothers and Autodesk, as well as family office Lauder Partners and venture capital firm Maverick Capital, funded a series C round of undisclosed size for OnLive in 2009.
Warner Brothers and Maverick previously backed a $16.5m series B round in 2007. The company has not disclosed details about earlier funding
OnLive will henceforth merely exist as a corporate entity managing unsold assets including trademarks, copyrights and product designs.