The cloud gaming portal, Onlive, is rife with rumours at the moment. With lots of recent employee layoffs sparking the opinion that Onlive may face bankruptcy.

Onlive have come forward stating that they have been bought by a newly formed company, just yesterday...

OnLive is a company that lets you play some games via their servers over the Internet. The angle being that low-end pc's are then capable of playing demanding games. In reality gamers have often said that it has not always delivered this ideal experience.

All services from the cloud gaming provider, OnLive, which are available now will continue to be available in the future. The official statement says the company will be re-hiring the majority of their employees. It is clear some employees have already been fired.

The company says they are looking to continue expanding in the future. That sounds like big company bravado, when maybe what people want to hear is how will they stay afloat?

The root of the problems that face OnLive are not entirely clear yet. But we can hazard a guess at it being to do with bringing out new technology/concepts before their time, with Internet speeds and latency not quite capable of what might be required to deliver seamless cloud gaming.

A couple of weeks ago there was an announcement that OnLive would partner up with the new techie kid on the block, the console Ouya. Ouya enjoyed huge success with a Kickstarter campaign only a couple of months back. Incidentally this is another tech that GD is watching closely, but is not all together convinced of the substance behind the product. Time will tell. From OnLives perspective, getting cosy with the popular Ouya kid is all they can do now to maintain positive press. It was only a few short years ago when OnLive held the title of Popular New Tech.

There are certain companies that may be happy with this news, for example Sony’s Gaikai. 

So whats your thoughts? Have you tried OnLive? If not will you give it a try? And how do you think it compares to Gaikai?