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OnLive has over 1.5 million active users

Number "growing rapidly" and expected to continue to do so under new company

OnLive has more than 2.5 million subscribers, with an active base of over 1.5 million, according to the embattled cloud gaming firm.

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In an official Q&A attached to a press release explaining that the company has reformed as a new business in the face of "difficult financial decisions", OnLive promised that no services will be disrupted.

"The OnLive Service has been in operation 24/7 without interruption since its launch over two years ago, and is expected to continue to operate smoothly under the new company. All games, products and services remain available, and the company has new product and partnership announcements on the way."

Over the weekend OnLive CEO Steve Perlman blamed huge server running costs for pushing the company into the red, saying: "If you've got 8,000 servers and 1,600 [concurrent] users, how could we ever get to cash flow positive, right?"

OnLive's reorganisation has resulted in nearly half of the firm's previous workforce being offered jobs at the new company. All share options and other salary contracts have been terminated.

The company said today that the cloud gaming service's "user base is growing rapidly with OnLive's addition into recently announced devices and TVs from major manufacturers", adding: "We expect this growth to continue under the new company."

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