The original email that was sent (below) was quickly recalled.
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.
We reached out to Brian Jaquet at OnLive who quickly told us that “the OnLive service is not shutting down.” Rumors about other layoffs he was unable to comment on.
Like I said this would’ve been a total shock after seeing what OnLive showed us at E3 and more recently partnering up with OUYA. So there you have it. OnLive service is running as usual. If there is something else that becomes official we will let you know as soon as it happens.