Rumours of OnLive's demise last week have turned out to be premature, although things still aren't looking rosy for the cloud gaming company.

The OnLive service, which lets you play streamed console games direct to your Android device, has laid off all of its staff and sold all of its assets to a newly formed company.

But, here's where it gets a bit dodgy - OnLive has been sold to... well, itself.

And we're live

The new company is called OnLive (no, seriously), and it's not only taken on all of the former company's assets, but also half of its staff.

In a statement, OnLive said that it was "faced with difficult financial decisions" and as a result was forced to restructure the company under the "Assignment for the Benefit of Creditors" law.

What this means is that rather than going bankrupt, OnLive laid off all of its staff and sold all of its assets to a separate company, which it formed in a bid to stay alive. It was "a heartbreaking transition for everyone involved", the company said in a statement, but one which allows it to stay afloat.

The service will continue to run as per usual, and users shouldn't notice any difference in the way the system works, which is good news.

Of course, the question remains as to whether this move is simply delaying the inevitable. Either way, the future isn't looking so bright for cloud gaming.

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