And that is why they did what they did
had about $30 to $40 million owed to various creditors and very little money left. While Gaikai was picked up by Sony, no one was picking up OnLive and they only had enough cash to last a few more days.
So, you can see, why they acted quickly in going a route that's kinda like bankruptcy but not really. CEO Steve Perlman, who I saw speak at E3, is staying on as CEO.
Sometimes you just don't think about the costs to run such a service, and they had a TON of operating costs. They obviously didn't have the amount of people subscribed to the service to generate the revenue needed.
But, at least they are still operating..... for now.