For once, why doesn't a MMO company just buy enough damn servers to begin with?
OnLive is dead: venture capitalist retains less than 50% of the employees - GAMER.BLORGE
Perlman explained that the reason the company is collapsing is due to poor estimation of the server scale. OnLive apparently initially acquired thousands of cloud servers which can’t be maintained with the current low user base.
Perlman told employees, "If you’ve got 8,000 servers and 1,600 users, how could we ever get to cash flow positive, right?"
I'm assuming it's because once you sign up for those servers you're stuck with them (which will slowly drain you of your money).
It WOULD be nice for them to properly estimate how many servers they need for once. However, because of retail stores (who never properly report their sales to the game companies) it's a shot in the dark. Until we move to 100% (trackable) digital distribution it will stay like this.
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