OnLive had 1,600 active users for 8,000 servers
The company has been acquired by "a very rich businessman".
The news of the weekend was the restructuring of OnLive in a new company that has been acquired by an anonymous owner.
As the hours go by, more data is available on this movement, which has resulted in the dismissal of "at least 50% of the workforce" (around 150-200 people), according to various sources, although without official confirmation.
One of the causes of the change of hands of OnLive have been the enormous maintenance costs of the 8,000 servers they have contracted: "There was no way to estimate exactly how many servers we were going to need. So we literally bought thousands, along with all the equipment and networks to get out of it," confirmed the OnLive CEO Steve Perlman.
The service did not have enough users to make the investment profitable: "If you have 8,000 servers and 1,600 simultaneous users, how can we achieve a positive cash value?" Perlman wondered in the last meeting with his employees. These 1,600 active users collide with the close to 2 million users announced by the firm some time ago, which actually referred to the number of accounts created for the service. Account creation is free.
Another of the mismanagement problems was to dramatically increase the number of employees in a short space of time, the number of service users not adapting to reality.
Who is the OnLive buyer? The first information placed his purchase in a 'third party' company, but finally it is known that it has been acquired by an individual businessman: "He is an extraordinary man and a well-known capitalist". Perlman adds that he is a "very wealthy" person who thinks OnLive "is the future."