Despite the rumors spreading around the internet, OnLive is not closing.
Responding to reports from Mashable and tweets from InXile Entertianment's Brian Fargo claiming that OnLive was closing and that the staff was being laid off, OnLive's director of corporate communications flatly denied the rumors.
"We don't respond to rumors, but of course not," OnLive's Brian Jaquet responded.
"The exciting news is that the first VIZIO Co-Stars (Google TV stream players) with the OnLive app built-in have just arrived in customer homes and our second of three 'Indie Giveaway Weekends' is going on now," he added. "OnLive users can get a free copy of the award-winning games Space Pirates and Zombies and SpaceChem."
The original email that Fargo received said the following:
I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist. Unfortunately, my job and everyone else's was included. A new company will be formed and the management of the company will be in contact with you about the current initiatives in place, including the titles that will remain on the service.
It has been an absolute pleasure working with you and I’m sure our path with cross again.
While the company has since rejected rumors of closing, it's interesting that Jaquet didn't deny the claims that there were indeed layoffs. We'll be sure to keep you updated with anything we learn.