OnLive, Not Very Live: Only 1600 Concurrent Users of Cloud Service, Company Tumult Reveals
If you hope that cloud-streaming of 3D interactive content will transform MMOs and virtual worlds and make them much more accessible (and I definitely did, and do), then this is pretty bad news: Leading cloud service OnLive just went through some painful company layoffs and restructuring, and in this painful tumult, we learned just how little people are actually using OnLive:
CEO Steve Perlman told workers the company was averaging 1,600 concurrent users on a service with 8,000 servers requiring maintenance.
Does this mean cloud-based gaming is dead? Not necessarily:
Onlive competitor Gaikai, of course, was recently bought by Sony as a Playstation service, and I know of two or more other cloud-deployment services currently in development that could rise where OnLive has fallen. Trouble is, with OnLive sputtering so spectacularly, I think investors will worry about playing in this space for quite awhile.
Hat tip: Howard Berkey.