Update: While OnLive provided the same statement (below) to Kotaku as they did to Joystiq, a new report from Kotaku, citing a source inside OnLive, claimed the company is about to file for bankruptcy and layoff most of its employees:

[tweet https://twitter.com/onlive/status/236537627526979584]

OnLive’s Director of Corporate Communications Brian Jaquet has shot down rumors that the game streaming service is closing its doors after several media outlets reported the story earlier today. A report from The Verge, citing video game developer Brian Fargo and emails from former OnLive staff members, claimed the game-streaming service would shut its doors and lay off staff immediately. Emails obtained by The Verge’s sister site, Polygon, claimed a new company would be formed. However, current OnLive employees would be let go for the time being:

Speaking with Joystiq, Jaquet confirmed OnLive is not shutting down:

When asked about possible layoffs, Jaquet confirmed: “The OnLive service is not shutting down.”

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