HTC writes down $40 million on OnLive gaming investment

HTC writes down $40 million on OnLive gaming investment
HTC’s situation just isn’t getting much better recently - the company sales have been in a decline for a couple of quarters and its recent investments are failing it. HTC now said it will book a $40 million loss from its investment in online gaming platform OnLive, that has recently narrowly avoided going bankrupt. This basically means that the Taiwanese phone maker is giving up on the OnLive, the cloud gaming system, that was supposed to improve its smartphone gaming allure.

OnLive streams demanding games over the Internet to computers and from end-2011 to Androdi devices. High infrastructure costs however forced a restructuring. Last week, it announced that an unnamed buyer has acquired it, but the platform had to lay off an undisclosed number of employees.

Recently, HTC said it will sell half of its stake in Beats Electronics, the audio equipment maker that the Taiwanese company bought to improve sound on its devices. It’s believed that the technology just couldn’t give enough of a noticeable improvement in sound to be justified. Now, HTC will retain only a 25% stake in the company.

source: IDG via TheVerge



1. wendygarett unregistered

What is onlive?

10. dmckay12

Posts: 243; Member since: Feb 25, 2012

It is awesome. You basically play PC/console games on your phone. All the processing is done off device (the finished product is streamed to your phone), so the only thing that you really need is a really fast data connection.

2. LiudvikasLTU

Posts: 15; Member since: Jun 26, 2012

Now this is sad :/ I love HTC, and I would'nt wan't it bancrupt. They make solid phones from good materials, not from plasty plastic like most of samsung phones.

5. preet27in

Posts: 173; Member since: Jul 07, 2012

exactly right. htc is one of the best build quality phones and best ui sense. so far. i love htc phones. atleast they dont look cheaper like samsung phones. best of luck htc

3. Fuego84

Posts: 357; Member since: May 13, 2012

It's a gaming cloud service, it allows you to play console games on your phone with an option to buy said games. It's pretty good if you have Wi-Fi available. I've played Darksiders and dirt 3 on my HTC one S and it was good, well on Wi-Fi, it claims you can also game thru 3g but it lags so much it's unplayable. Also i read it works with a lot of devices tablets, phones etc.

4. darktranquillity

Posts: 285; Member since: Feb 28, 2012

Whatever htc buy these days is junk:-(

6. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Problem with HTC are 1) Samsung is a strong competitor which have manufacturing advantages. 2) Mimicking the iPhone hardware design in their HTC One series, non removable battery, no SD card slot, Android user hate restrictions. 3) Sense interface is more a curse than a blessing these days; mostly due to the bad rep of the past, people still think its CPU/resources intensive, drain more battery than touchwiz. 4) Only die hard HTC fan would buy their phone solely for the sense experience that don't amount much in sales volume. To survive give the user what they want instead of what you want them to have.

7. babyk

Posts: 379; Member since: Nov 03, 2011

trust me sense 4.1 turns every thing around for htc and they need to have mroe phones with sense 4.1 that will help with sales becasue at the moment sense is much better and smoother than any other ui out there

8. squeeb

Posts: 99; Member since: Dec 02, 2011

"It’s believed that the technology just couldn’t give enough of a noticeable improvement in sound to be justified." Beats audio price not justified? SHOCKING!!

9. yadunandan

Posts: 2; Member since: Dec 31, 2010

HTC needs to be more agile in the market and come up with UI and feature related improvements quickly. Better, faster hardware, ample RAM memory and GPU speed and memory are the things it needs to master and get back in the market quickly to counter Samsung. HTC needs to ramp up their software department to enable quick updates to Android and remain attractive in the market. The gaming and music investments were really strategic and futuristic. It would have propelled HTC to the iPhone league. However, it takes huge investments and failure can be fatal if the revenues are not stable.

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