John P. has received a response from OnLive PR
“We can’t comment on rumors, but OnLive is just fine. The exciting news is 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. OnLive users can get a free copy of the award-winning games Space Pirates and Zombies and SpaceChem (more details on our blog here: blog.onlive.com). Will be in touch about other new products that are in the works.”
Update 2: Kotaku is reporting that OnLive is filing for bankruptcy in California state court which requires laying off all employees. A new company which may or may not use the Onlive name will be reformed from the ashes after the filing.
Update 3: The dust has mostly settled, and OnLive has issued a statement where they explain the company has been sold to a new venture that will continue its gaming operations. Read our full story here.