If you're a gamer or keep up with tech-sphere you'll know of OnLive. It burst on to the scene bringing the the idea of cloud-based gaming, whereby all the games are stored in a central database and streamed to your screen. All you do is pay a monthly fee and buy the controller and a little black box which will stream the gameplay.
It became very popular very quickly. They were partnering with some big names and seemed to be steam rolling over anyone else who tried to do the same. They were the kings of this sector.
However obviously something has gone horribly wrong because multiple sources from all around the web are reporting OnLive has laid off literally all of its staff and is filing for bankruptcy. The company as of today won't exist. This information comes from kotaku. However OnLive seem to be telling others that the company is fine and that it is not closing.
It looks like the time for cloud gaming just hasn't arrived yet. I don't know anyone who actually owns an OnLive gaming system which says a lot. People are happy with the basic console gaming and buying discs and downloading content through their respective stores.
TechCrunch are now saying OnLive have actually been bought. The CEO Steve Perlman has left the company and is shitting on everyone in the process. He's getting rid of all the employees so that the company has less liabilities.
No one knows who the buyer is yet but they want everything, the assets, IP, branding..etc.