But, despite the initial hype, OnLive received mixed critical reception. Critics had several issues with OnLive including input lag, poor visual quality (which reportedly varied from game to game) and there was also a lack of games to play as software had to be modified before it could work with the service. As a result, OnLive filed for bankruptcy in 2012, let many staff members go and was turned into a different company called OL2.

Under OL2, all of OnLive’s existing services were continued and they also introduced a service called CloudLift. CloudLift worked with users’ existing Steam libraries and let them stream their Steam games to any device with a browser for $14.95 a month. However, this price was soon halved three months later when players argued that it was too expensive.

Ultimately, it was a combination of these things which have led OnLive to be sold to Sony. In a blog post announcing the sale, the company also explained that it was becoming too expensive to acquire new users, many gamers already thought that OnLive was “defunct” and that other companies that could have purchased them said that the cloud gaming “hype cycle” was running its course.

As a result of the sale, all of OnLive’s services will be shut down on April 30, 2015. All user data including “game save data, achievements, and credit card data” will be deleted unless game save data and achievements are on CloudLift, and so they’ll be saved on Steam instead.

Sony, on the other hand, will be able to use its newly acquired IP and assets (which includes 144 patents) to help improve the infrastructure of their PlayStation Now game streaming service and its PlayStation Vue TV streaming service as well. It’s also beneficial as the company’s streaming services will have one less rival to compete with after Sony bought game streaming platform Gaikai in 2012 for $380 million, before using it to build PS Now.

Do you think this is a smart move from Sony? Are you sad to see OnLive get shut down for good?

Source: OnLive