OnLive gaming set to shut down after selling patents to Sony

Gaming service OnLive is shutting down after selling 140 of its patents to Sony.

The California-based service, once valued at $1.8bn, ran into trouble in 2012 after finding itself in $40m in debt.

The service then seemed less appealing to viewers – many of whom had switched to options much like Netflix, which allowed them to play as much as they wanted for a flat fee.

Just a year ago, the OnLive launched a cloud service, but even that went poorly as the cost to sign up was slashed in half after only a month.

"It is with great sadness that we must bring the OnLive Game Service to a close," a message on OnLive’s site read. “As the first-ever game streaming service of its kind, everyone who has ever played a game using OnLive has contributed to the technology and its evolution in some way.”

Regardless of the shutdown, Sony is poised to apply all acquired patents to its current lineup.

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