OnLive the cloud gaming server was sold to a venture capital group (Lauder Partners) for $4.8m (£3m) in August. There is still going to be big job losses and also investors are not too pleased with their stakes being written off as the depths of OnLive’s financial issues were uncovered.

For you people that don’t know OnLive allows users to play AA games titles over the internet without the need for a high end computer. Users run the software provided by OnLive (along with a games pad) and the footage of the game is streamed to users. The service is rumoured to have around 1.5m active users when it was sold but only a small 1,600 concurrent users.

OnLive had some very high profile companies as investors such as BT, Taiwanese smartphone maker HTC, US media group Time Warner and the US telecoms group AT&T. All of which will see no pay-out as the company owed around $18.8m. There are a lot of confused analysts out there who have suggested that OnLive’s patents alone should be worth hundreds of millions of dollars.

The founder of the company Steve Perlman left the company shortly after the takeover was completed. There is no need to worry as the company is still offering its services in the US, UK and Belgium.

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