By Joseph Leray

Over the weekend, while most of us where enjoying the dog days of summer and watching True Blood, OnLive was busy filing for bankruptcy, firing its staff, and being rescued by Lauder Partners, a venture capital group.

According to a statement released by the newly-restructured OnLive, the company was placed under an “Assignment for the Benefit of Creditors,” by which an assigned party takes control of a bankrupt company’s assets and debts in an effort to right the ship.

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Streaming game service, OnLive, has recently put out and update for its Android app that will let us play full PC-quality HD games on smartphones and tablets like Amazon's recent Kindle Fire. Support for iOS devices like the iPhone and iPad is coming soon, very soon we hope.

The OnLive app, which originally only allowed users to browse through the catalog of available games and use the social features the service provides, will now give gamers complete gameplay support for any of the titles the service currently offers, such as Batman: Arkham City and Rockstar's L.A. Noire. Read More...

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I had a brief chat with OnLive founder Steve Perlman yesterday as we both waiting to be interviewed by USA Today. Perlman said that response to OnLive, the cloud-computing console competitor announced earlier this week, has been strong.

I asked him how he's been handling all of the doubters. His response, he told me, is that major video game publishers don't sign up for a project that isn't going to work. The confidence those publishers have should bolster people's faith in OnLive being able to deliver what both Perlman has promised and what has worked in test situations like the one I played through with the service earlier this month.

He said that people who have told him that what he's doing is technologically impossible just aren't privy to the breakthroughs they've made. We were just beginning to talk about his claim to this blog that "to make OnLive work involved fundamental work in psychophysical science," but I got pulled away.

Walking over to DoubleFine Studios earlier this week here at GDC to get an embargoed look at "Brutal Legend," I spotted a familiar gaming figure with his back to me, waiting to cross the street. This was happening less than 24 hours after the leaked news of the OnLive cloud-computing service. And here, in front of me, was the game designer who has been talking publicly about a One Console Future and cloud computing more loudly than most.

I shouted to get his attention: "Denis Dyack was right!"

Dyack, president of Silicon Knights, turned. He had given me a long, confident pitch about cloud computing just a month ago at the DICE gaming event in Las Vegas. So he was feeling proud to be on the right track. He said he didn't know enough about OnLive to comment about their plans, but said that he's been excited to see other companies, including IBM, also pursuing this kind of technology. I joked that he should try to make his studio the first OnLive-exclusive development group.

He laughed. I headed off to "Brutal Legend."

I know what you all want to see that newly announced cloud-computing supposed console-killer is proof that OnLive isn't going to be ruined by lag. I don't have video proof of that. But you can watch the menu in action, to at least see their aesthetic and to imagine you're booting up a game.

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After trying the newly announced OnLive gaming service, I was impressed but skeptical. So I asked its lead creator Steve Perlman nine questions, many of them doubting his project will work against a Wii or without a "Halo." He replied.
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