As of this moment OnLive the online game streaming service is bankrupt.

This past Friday, OnLive held its final meeting with CEO Steve Perlman telling staff the company was bankrupt and that the end was nigh.

He said: “I’ve been a non-stop fundraising machine. And I finally got to the point where I just could not bring in enough funding to carry this thing forward.”

Another administrator added: “All of us, technically, as of today, our jobs have ended – our current jobs with this company.”

OnLive is entering “Assignment for the Benefit of Creditors,” where an “assignee” (a person, persons, or entity) takes over the assets of the current company in a buyout to help alleviate the original company’s debt.

The assets for OnLive are “the software, hardware, network architecture, our logo, all that stuff,” according to Perlman.

He didn’t specify who the assignee was, just saying that he is “an extraordinary guy” and a “very accomplished and well known venture capitalist” who is “very wealthy” and believes that OnLive “is the entire future of everything”.

Considering the criteria, that rules out Microsoft, Sony or any other major company, and makes you wonder what he plans to do with the patents that could potentially be used to “sue the shit” out of Gaikai.

Sadly, whoever this venture capitalist is, he wasn’t wealthy enough to employee most of OnLive’s staff

Here’s the tough part – and this is the thing I’m very sorry about – it’s just not possible for one individual in a startup, whether it’s an old startup or this new startup, to bring in this many people into a company.

Perlman repeatedly expressed his regret during the speech, saying: “I’m the one that brought you here. I’m the one that ultimately made decisions. And I’m the one that ultimately takes responsibility. So I am sorry, and it didn’t end up exactly as we’d hoped.”

The OnLive service will remain online during the transition to the new company.

Although I disliked this company and what it was about I can’t help but admire Steve Perlman’s drive to make it work.

He must have really loved video games to have stuck with it for so long which is sad.

We do need more people like him in the industry however I feel if it’s not broke don’t fix it.

We wish the staff of OnLive the best of luck in the future.