HTC Loses $40 million from OnLive investment – Files with Taiwan Stock Exchange

Over the past year, HTC has continued to experience significant financial woes. It appears that the Taiwanese manufacturer simply cannot catch a break. Now HTC has released information stating it will take a loss of $40 million from it’s investment in recently troubled cloud gaming provider OnLive. Over the last week, OnLive, has undergone restructuring and was sold to a newly-formed company in order to avoid bankruptcy.

Back in February 2011, HTC had invested in OnLive, at the height of the service’s success in the smartphone market. The acquisition was made in what was seen as a move to eventually bring more online games to it’s company smartphone line. However since then, OnLive has been absent from all of the company’s noteworthy devices, and has continued to struggle financially due to the high operating costs associated with cloud gaming. As noted previously, this isn’t the first time an HTC investment has gone sour. The manufacturer’s investment in Beats Audio is just another example– of course with HTC’ recently buying back half of the company’s original investment in Beats Audio after failed integration didn’t differentiate HTC’s smartphones.

HTC won’t be left without a mobile gaming strategy, though — it was the first hardware partner announced for Sony’s PlayStation Mobile program. Elsewhere, HTC’s profits and market share continue to be squeezed, with July revenues down 45% from 2011 to 2012. The company will be hoping an expected fall refresh of some devices will help it deal with increasingly fierce competition from the likes of Apple and Samsung.

 

PCWorld         The Verge

Tags: , , , ,