OnLive, the video game streaming startup that was full of promise when it was unveiled three years ago, has reorganized its business and cut roughly half of its staff amid financial difficulties, the Associated Press reported yesterday. However, the company says that it will continue to operate under the same name and customers should not see a change in their service. Late last week, OnLive went through assignment for the benefit of creditors to avoid bankruptcy and allow it to continue operating its service. But employee stock options and investments from outsiders became worthless. HTC Corp., the Taiwanese mobile phone maker, said that it expects to book a loss of about $40 million for its investment in OnLive.
