Sony buys OnLive on a plan to merge it with Gaikai

By | April 3, 2015

Sony to boost and power up its online gaming portfolio has acquired OnLive cloud gaming service. On Wednesday, the cloud gaming service company OnLive has declared to wind down its operation on April 30 as Sony has bought many of its assets. This means that the company will not be another tentacle of Sony’s gaming empire.

Sony acquired Onlive

“After five years of uninterrupted service, the OnLive Game Service will be coming to an end. Sony is acquiring important parts of OnLive, and their plans don’t include a continuation of the game service in its current form. Your service should continue uninterrupted until April 30, 2015. No further subscription fees will be charged and you can continue to play all of your games until that date,” says a message on the OnLive website.

OnLive was founded in 2010 as the first cloud gaming service allowing its users to play games without latency issues. But the business model was not very sustainable. In 2012, company faced lot of issues and laid off many of its employees. The founder Steve Perlman sold it to the investment firm Lauder Partners  and the company was then restructured.

Despite of restructuring, the company retained many of its features including the cloud gaming technology, now linked with Valve’s Stream service and the PlayPack, the library of 250 or older games that was available to users to play for a monthly fee. While restructuring in 2012, employees remarked the company underestimated the number of servers it needed versus the number it actually used. There are high chances the same could have happened again.

In 2012, Sony made its previous purchase of cloud gaming company called Gaikai. It is expected the assets acquired from OnLive will join Gaikai. Gaikai is widely believed to be powering the Sony PlayStation Plus service, that permits users of Sony PS4 to play older PS3 games through the cloud and powers PlayStation Now streaming subscription service which is on its way to TVs soon.