Sony purchased the promising video game start up and plans to shut it down by the end of the month.
All that is gold cannot stay. According to recent reports, Sony purchased OnLive, an online streaming video game platform, and will shut it down by the end of the month. The California company offered a new cloud based approach to playing and storing games that threatened some of the big name systems.
“Following the termination of the company’s services and related products, OnLive will engage in an orderly wind-down of the company and cease operations,” OnLive wrote in a statement, but offered no other details about what the next project will be.
Sony confirmed the deal, saying the purchase opens “great opportunities for our gamers, and gives Sony a formidable patent portfolio.” Terms of the deal have not been disclosed.
Founded more than a decade ago by Apple and Microsoft alum Steve Perlman, OnLive had hoped to change the video game industry by removing the need for expensive gaming systems and accessories and instead focusing on the game quality and content. The technology allowed users to play games on tablets and computers without owning the actual disks, much like with Netflix does for movies. The company hit hard times nearly 5 years ago and had to declare bankruptcy. It held on with a few devoted fans, and actually started gaining popularity within the last few years.
The Japanese tech giant Sony developed similar technology that launched in January called The PlayStation Now, and /4/have purchased OnLive to reduce competition. The PlayStation Now streaming service uses technology bought from a company called Gaikai for $380 million. That platform has had trouble getting off the ground, much of which has been attributed to the lack of newer games.
In its statement, Sony said its continued investment “is yet another proof point that demonstrates our commitment to changing the way gamers experience the world of PlayStation.”