Online Gaming Firm OnLive Woes Hit HTC

HTC, best known for making smartphones, has revealed that it's going to have to book a $40 million loss in direct result to the failings of U.S. firm OnLive. OnLive, a U.S. based online streaming gaming service, was on the verge of going bankrupt but was bought by a new company and had to dramatically restructure its company over the weekend. HTC had invested in the firm a year and a half ago, and expects to see $40 million gurgle down the drain.

OnLive was among the first cloud streaming game services, and its financial issues are due in part to the very high costs associated with running the computer systems at its core. Sony, already an expert in gaming and with a thriving (if non-streaming) online gaming network, bought OnLive rival Gaikai in July for $380 million.

HTC has also just announced it'll make a $35.4 million investment for a minority 17.1% stake in Magnet Systems. Magnet is a Silicon Valley-based startup with an enterprise bent, offering platforms to companies so they can design and deploy their own cloud-based software to their employees. HTC explained that it'll help bring cloud services to its consumer clients and also help it address the enterprise market.

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