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

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