OnLive layoff rumor rages while company denies shutdown

This afternoon there's been a rumor spread like wildfire across the gaming universe that the group known as OnLive has been shut down, all of its employees fired in the process. A comment from Brian Jaquet, OnLive's Director of Corporate Communications, suggested that though they have no further comment, he wanted to make one thing known: "let me be clear. We are not going out of business."

This comment was all that Forbes contributor Jason Evangelho was able to get out of the OnLive official aside from the basic "thanks for the note, we do not have a comment." OnLive has not made any comment on the possibility of layoffs, whether they actually exist or not. They've also still left open the possibility of a purchase from on high. If another company has acquired OnLive, it would be easy to see how a rumor might spread that employees would be turned out quickly.

Earlier today, the rumor went something like this: Mashable appears to have been the first to receive the tip that an email was being sent out to news groups and partners from employees of the company:

"I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist. Unfortunately, my job and everyone was included. A new company will be formed and the management of the company will be in contact with you about the current initiatives in place." – supposed OnLive employees

Now we must wait to see if OnLive will bring on a more extensive statement on the current status of their company and their employees. We're expecting this situation to mostly be made up of bits of rumor and phone-game sorts of here-say, but you never know! Stick around on SlashGear to hear more as we find out!