What is Really Going on with OnLive

We've followed OnLive for a while now - in fact, we met them before they officially launched their product and have been trying to keep track of what has been going on.  Recently, they performed some massive financial restructuring that was just short of declaring bankruptcy.  TheVerge has the real information as to what is going on with this virtual gaming console company.

The actual game would run on a powerful server miles away, which the user would remotely control, and that server would stream compressed video frames of the action back to the user, letting them watch the game in motion. Yes, it could play Crysis, and that was actually one of the original games the company let attendees try at the show.